Michigan PSC Adopts Nonbypassable Reservation Charge Applicable to Choice Customers at Michigan Gas Utilities

The Michigan PSC has approved a new reservation charge applicable to Gas Customer Choice customers at Michigan Gas Utilities Corporation.

In setting the charge, the PSC adopted a settlement among parties that had been first reported by Matters.

Under the settlement, the PSC adopted a base Gas Cost Recovery (GCR) factor of $3.9353 per thousand cubic feet (Mcf), for the 12-month period ending March 31, 2013.

The base GCR factor of $3.9353/Mcf is comprised of a bypassable $3.2622/Mcf commodity charge applicable to GCR customers, and a nonbypassable reservation charge of $0.6731/Mcf, to be charged to both GCR and Gas Customer Choice (GCC) customers.