State Orders New Choice Comparison Website to Include "Snapshot" of Historic Rates, Won't Require Suppliers to Promote

The Michigan PSC issued an order establishing a natural gas rate comparison website, and retail natural gas suppliers will be required to post pricing on the site.

The site, when live, will be MI.gov/CompareMIGas

Only two issues were contested during a collaborative process to develop the comparison site: whether historic rates should be included on the site, and whether suppliers should be required to promote the price comparison website.

Regarding historic pricing, the PSC ordered that the price comparison site include the listing of the utilities' 12-month historical pricing information for GCR customers as well as a "snapshot" of the website on a going-forward basis.

In a process similar to that now used for the Ohio apples to apples charts, the snapshot for the Michigan comparison site will involve Staff saving and posting a snapshot of the actual Compare MI Gas website at least quarterly, dating back 24-months. This will allow customers to have access to historical information, and to do so in the same format as they are reviewing current offers

Suppliers will not have to submit any historical data.

"The Commission concludes that it would be inequitable to require utilities to provide historical pricing information without also requiring some kind of historical pricing for the AGS participants," the PSC said.

But the PSC declined a proposal from utilities to require the posting of weighted average prices charged by suppliers.

In opting for the snapshot approach, the PSC said that it concluded that many of the concerns the AGSs have raised about the difficulties of providing historical rate information have merit.

Regarding promotion of the comparison site, the PSC concluded that any reference or promotion of the website by the utilities or the alternative gas suppliers should be discretionary and cannot be compelled.

"Although the Commission encourages the reference to and promotion of the website, the website's promotion or reference is entirely discretionary," the PSC said.

Certain parties had proposed making suppliers reference the comparison website in their contracts, ads, and marketing materials, but the Commission declined to impose such a requirement.

Under the PSC's order, any supplier that is actively marketing and/or enrolling residential or small commercial customers will be required to submit "generally available" offers to the comparison website.

Each AGS will be allowed to post up to five offers per offer type within each utility service territory.

AGSs will be allowed to offer products in the marketplace that reflect lower prices than those posted on the website, but in no instance will be allowed to offer products in the marketplace that reflect higher prices than those currently posted on the website.

Case No. U-17580