Reservation Charge Approved at Michigan Gas Utilities

The Michigan PSC has approved a reservation charge at Michigan Gas Utilities Corporation which will allocate to choice customers certain costs related to the Supplier of Last Resort function (U-16481).

The PSC approved without modification a proposed decision (11/23), and authorized Michigan Gas Utilities Corporation, effective with the first billing month following the issuance of the instant order, to implement a reservation charge of $0.8014 per thousand cubic feet for Gas Cost Recovery (sales service) and Gas Customer Choice (GCC) customers.

The reservation charge will be reflected as a separate line item on the customer's bill.

Michigan Gas Utilities is also required to file a proposal in its next Gas Cost Recovery (GCR) application, "concerning how it proposes to credit GCR and GCC customers for revenues from the release of storage and sales, and overrecoveries."

The PSC also authorized Michigan Gas Utilities to incorporate into its rates a base Gas Cost Recovery factor of $6.6938 per thousand cubic feet, effective with the first billing month following the issuance of the instant order.