March 12, 2003

The Michigan Public Service Commission today established licensing procedures for alternative gas suppliers (AGSs) participating in natural gas customer choice programs approved by the Commission. 

In an order issued on February 5, 2003 in this same proceeding, the Commission invited interested parties to comment on the Commission's proposed alternative gas supplier licensing procedures.  Comments were received from Consumers Energy Company, Michigan Consolidated Gas Company, Attorney General Michael A. Cox, Cornerstone Energy, the National Energy Marketers Association, Energy America, Kaztex Energy Management, Inc., WPS Energy Services, Inc., and Interstate Gas Supply, Inc. 

In today's Commission order, the proposed licensing procedures were adopted, with modifications, and will affect all current and future AGSs.   The licensing procedures apply to any person selling natural gas at unregulated retail rates in Michigan and participating in natural gas customer choice programs approved by the Commission.

The Commission's actions today are in compliance with the passage of Public Act 634 of 2002, which became effective on December 23, 2002.  These licensing procedures will help ensure that alternative gas suppliers licensed by the Commission possess the necessary financial, managerial, and technical capabilities to conduct business in this state.  The Commission continues to work on developing standards under Act 634 governing slamming and cramming by alternative gas suppliers.

"Today's action is an important step in the process of providing options to all natural gas customers in Michigan," said Commission Chairman Laura Chappelle.  "Michigan citizens have the right to expect that alternative gas suppliers have the necessary capabilities to provide their customers with economic, reliable service."

The order may be viewed in the PDF format by going to:

  http://www.cis.state.mi.us/mpsc/orders/gas/2003/u-13694b

The MPSC is an agency within the Department of Consumer and Industry Services.


Case No. U-13694