Michigan Gas Utilities Receives Temporary Approval for Higher Default Service Rates

The Michigan Public Service Commission has approved a temporary gas cost recovery (GCR) factor for Michigan Gas Utilities.

Effective with bills rendered for the next full billing month until issuance of the Commission's final order in the GCR proceeding, the utility is authorized to charge a monthly GCR factor of up to $5.7471 per thousand cubic feet (Mcf).

On March 25, 2014, the utility filed an application seeking a base GCR factor of $5.9122 per Mcf. In its March 25 filing, the utility noted significant increases in the market price for natural gas on the New York Mercantile Exchange (NYMEX) due to extreme colder-than-normal weather. The company cited a 2013-2014 under-recovery of approximately $6.6 million in GCR revenues, and said that it expects the rise in natural gas prices will result in significant additional commodity costs for 2014-2015.