MPSC Approves Three Gas Cost Recovery Settlement Agreements

The Michigan Public Service Commission (MPSC) today approved three settlement agreements dealing with gas cost recovery (GCR) plan reviews.

The utilities noted that the recent and unanticipated increases in market prices for natural gas have placed them at risk to experience significant under-recoveries.  Further, the companies note that any delays in recovering these large increases would economically burden their customers by requiring them to pay additional costs, plus interest, in the future. 

In Case No. U-14260, the MPSC approved a settlement agreement with SEMCO Energy Gas Company, that adds the months of January 2006 through March 2006 to the GCR plan approved by the Commission on Dec. 21, 2004.  The Commission also authorized the company to implement a base GCR factor of $12.09 per thousand cubic feet and to suspend its contingency mechanism for the billing months of November 2005 through March 2006 in the territory formerly served by Peninsular Gas Company.

In Case No. 14404, the MPSC approved a settlement agreement with Xcel Energy that authorizes the company to charge a base GCR factor of $1.2232 per therm and suspend its contingency mechanism for the billing months of November 2005 through March 2006. 

In Case No. U-14580, the MPSC approved a settlement agreement with Wisconsin Public Service Corporation that authorizes the company to incorporate into its rates a uniform GCR factor of $1.10826 per therm for the months of November 2005 through October 2006.  The utility is also authorized to adjust its GCR price ceiling on a quarterly basis

The MPSC is an agency within the Department of Labor & Economic Growth.

Case Nos. U-14260, U-14404, and U-14580

# # #