Michigan Adopts Reservation Charge Applicable to Choice Customers at DTE

The Michigan PSC has approved a reservation charge applicable to retail natural gas choice customers at DTE Gas (MichCon).

Specifically, the PSC adopted a reservation charge of $0.26 per Mcf. This will be applicable to choice customers, as well as default service customers (rolled into the GCR).

The PSC also declined to implement a capacity release proposal offered by IGS Energy, but said that this proposal should be considered in the utility's next GCR plan case so that all parties have an opportunity to consider the effect such a program will have on the utility's non-transferrable obligation to serve as the supplier of last resort for all customers, regardless of classification.

"Although IGS requested that the Commission use this opportunity to revisit DTE Gas's policy that requires it to maintain sufficient capacity to meet the needs of all of its customers, both GCC and GCR alike, the Commission rejects this recommendation based on its earlier analysis that the utility must meet its operational requirements and has a legal obligation to act as the supplier of last resort for all of its customers. Accordingly, the Commission rejects the recommendation that it revisit that policy at this time and postpones consideration of a pipeline capacity release program until the utility's next GCR plan case," the PSC said.

Case No. U-17131