Michigan Gas Utilities Seeks to Refund Reservation Charge Over-recovery to Non-Shopping Customers Only

Michigan Gas Utilities Corporation has filed to return an over-recovery under its reservation charge to Gas Cost Recovery (GCR) customers only, for the 12-month period ended March 31, 2012 (U-16481-R).

During the months of February through March 2012, MGUC collected $3,435,431 from GCR and Gas Customer Choice (GCC) customers pursuant to the reservation charge, and incurred fixed costs of $3,377,396, resulting in a cumulative over-recovery of $58,035.

"For this year only, MGUC proposes to credit the Reservation Charge cumulative over-recovery of $58,035 to GCR customers because the GCR customers alone contributed to the expenses comprising the Reservation Charge for 10 months of the 12-month GCR period," MGUC said.

Beginning with the company's reconciliation for the 12-month period ending March 31, 2013, MGUC proposes to perform a separate cumulative reconciliation for the costs and revenues attributable to the Reservation Charge from both GCR and GCC customers.

Additionally, MGUC proposes to allocate 100% of the capacity release credits for the 2011-12 period to its GCR customers. "This is because the Reservation Charge was not in place for GCC customers until February 2012. For future GCR periods, where the Reservation Charge will be in place for GCC customers throughout, the Company proposes to allocate capacity release credits to both GCR and GCC customers."

MGUC reported that as of April 30, 2012, MGUC was serving approximately 165,000 customers, including about 128,500 residential customers, 8,000 commercial and small industrial customers, 24 large industrial customers and 28,400 transportation and Gas Customer Choice customers.