|
Consulting |
Search |
Michigan Gas Utilities Now Only "Contemplating" Choice Moratorium; Silent on Whether PSC Approval Needed
July 15, 2011
Email This Story
Michigan Gas Utilities Corporation has revised its earlier testimony and is now only "contemplating" a moratorium on choice enrollments, but it has made no statement regarding whether, after such contemplation is complete, it believes it can implement any resulting moratorium without specific PSC approval.
As only reported in Matters, Michigan Gas Utilities originally said that it, "will cease accepting new GCC [Gas Customer Choice] customer enrollments for one year," beginning September 1, 2011, to allow it time to evaluate current operational issues raised by the current level of choice load (see 6/29).
PSC Staff has taken the position that Commission approval for any moratorium would be required, and moved to strike Michigan Gas Utilities' testimony in which the moratorium is discussed (see 7/8).
In a response to Staff's motion to strike, Michigan Gas Utilities has clarified that it is not seeking approval in the instant Gas Cost Recovery and reservation charge proceedings (U-16481 et. al.) to implement the choice moratorium.
Furthermore, Michigan Gas Utilities submitted revised testimony stating that it is now, "currently contemplating a moratorium during which it will cease accepting new GCC [Gas Customer Choice] customer enrollments for possibly up to one year," indicating it has not yet made a decision on the issue.
However, Michigan Gas Utilities' response is silent with regards to, once it completes its evaluation of the issue, whether it intends to seek approval from the PSC for any choice moratorium, or whether it believes such approval is not necessary given the voluntary offering of the choice program by Michigan Gas Utilities.
Indeed, Michigan Gas Utilities said in a footnote that as it is not seeking PSC approval in the pending cases to impose a moratorium on choice enrollments, the issue of Commission authority relating to implementing the moratorium is not relevant in the instant proceedings.
While Michigan Gas Utilities said that it will further contemplate the choice moratorium, it did testify that it agrees with the Residential Ratepayer Consortium that a moratorium is "likely" necessary.
While Michigan Gas Utilities was silent with regards to whether approval is needed, the Residential Ratepayer Consortium said in a filing that Staff cited no legal authority in support of its position that Michigan Gas Utilities must secure Commission approval for any choice moratorium.
"MGUC's GCC program was first authorized by the Commission in its February 25, 2002 Order in Case No. U-13232. That order specifies that the customer choice program is 'voluntary'. The RRC is aware of no Commission order, tariff, statute or other legal provisions that restrict or constrain MGU's voluntary choice with respect to enrolling customers in its gas customer choice program - especially if that choice affects the Company's continuing ability to safely and reliably operate its natural gas distribution system. Moreover, in the testimony that Staff seeks to strike, [MGUC witness] Mr. Huzzey makes no recommendation for changing the Company's GCC tariff," the RRC said.
Email This Story
Copyright 2010-
Be Seen By Energy Professionals in Retail and Wholesale Marketing
Run Ads with Energy Choice Matters
Call Paul Ring
954-
|
Consulting |
Search |