LANSING – The Public Service Commission on Thursday assessed a fine of $518,800 on Consumers Energy Company for violating rules related to its estimated billing practices.

The PSC, on January 19, opened an investigation into the utility’s estimated billing practices after hearing complaints from customers for “years,” it said in a statement on the matter (case U-18002).

Almost four months after the utility admitted that 12,671 customers experienced more than 12 months of consecutive estimated reads, it had still failed to obtain an actual read for 2,579 of those customers, PSC Chair Sally Talberg said in a statement.

“This means that, at a minimum, these customers had experienced 16 continuous months of estimated reads,” Talberg said. “The Commission finds it appropriate to impose a penalty for violation of MPSC Rules 13 and 8 of $200 per customer for each of the customers identified by the company as having received a minimum of 16 months of estimated reads, for a total penalty of $515,800.”

And she slammed the company as disrespectful over the matter.

“Consumers Energy’s lack of effective monitoring, controls and customer communications to avoid recurring estimated bills for such a large number of customers over an extended period of time shows a disregard for the Commission’s rules,” she said. “No customers should receive an estimated bill for over a year.”

The utility will have to pay the fine to the state within 30 days. In addition, the PSC ordered the company:

  • Commence immediately to provide a time and date stamp when a hazard code is added to a customer account;
  • Mail a package of postage-paid pre-addressed meter reading postcards, with 30 days, to all non-automated meter reading customers with threat-of-violence hazard codes currently on their accounts, along with information on how to report meter readings by phone, fax, or online through the customer portal;
  • Convene a meeting or conference call, within 30 days, with MPSC and Michigan Agency for Energy staff to provide additional information on the criteria for review and the process associated with placing hazard codes on customer accounts;
  • Provide PSC and MAE staff with copies of the three reports intended to address past, present and future estimation accuracy as they become available;
  • Submit any proposed substantive changes to the approved estimated billing procedure at least 60 days prior to the implementation of the change to MPSC and MAE staff;
  • Remove from all pending and future general rate cases amounts associated with meter estimation related write-offs; and
  • File semi-annual reports containing certain information in this docket for three years.

The PSC staff had also been directed to add proposed language to the Technical Standards for Gas Service to set and define a meter reading factor of 85 percent for gas service, comparable to the language in the PSC’s Service Quality and Reliability Standards for Electric Distribution Systems.

DTE ENERGY COMPANY: The PSC on Thursday also approved a settlement agreement authorizing DTE Gas Company to implement an infrastructure recovery mechanism surcharge resulting in an increase of 68 cents on the monthly bills of residential customers beginning in the July billing month (case U-16999).

The PSC is also seeking public comment on four questions related to DTE Electric Company’s proposed voluntary renewable energy pilot program for full-service customers that would allow program participants to obtain a larger amount of renewable energy than the 10 percent mandated by law currently (case U-18076).

Comments referencing the case number must be filed no later than 5 p.m. on July 5. Responsive comments must be received no later than 5 p.m. on July 19. Comments may be mailed to Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, MI 48909. Electronic comments may be emailed to [email protected].

LOW-INCOME ENERGY EFFICIENCY FUND: The commission authorized DTE Electric Company, DTE Gas Company and Consumers Energy Company to issue a one-time stand-alone refund of monies collected for the now defunct Low-Income Energy Efficiency Fund and the Vulnerable Household Warmth Fund to their electric and natural gas ratepayers via a bill credit in the August billing month.

For residential customers, DTE Electric will issue a 12-cent credit; DTE Gas will give a 2-cent credit; Consumers Energy electric will give a 3-cent credit; and Consumers Energy gas will issue a 6-cent credit (case U-18105).

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