LANSING – The Michigan Public Service Commission on Thursday approved a settlement authorizing Consumers Energy Company to increase its natural gas rates by $40 million annually, though that is $20 million below what the utility self-implemented in January, the PSC said.
A future reconciliation proceeding will determine the amount to be refunded to customers, plus interest, the PSC said in a statement, but residential customers using 100 cc of natural gas per month will now see a decrease of $1.69 on their monthly bills effective in May (case U-17882).
The utility had filed an application requesting a rate increase of some $84.7 million in July 2015, so the final settlement is 53 percent below that request, representing an increase of 1.6 percent for residential customers over the rates set in its last natural gas case (case U-17643).
The settlement approved Thursday also:
- Authorizes Consumers Energy to implement a residential customer charge and, for qualifying principal residence customers, an income assistance credit of $11.75 per customer per month, an increase of 25 cents per month over current charges and credits;
- Authorizes continuation of the Enhanced Infrastructure Replacement Program (a gas main replacement program) as approved in another case (case U-17643) for the calendar year 2016;
- Approves the revenue decoupling mechanism proposed by Consumers Energy; and
- Doesn’t approve the investment recovery mechanism sought by the utility.
Various parties participated in the settlement, and Midland Cogeneration Venture Limited Partnership filed a statement of non-objection.
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