The Michigan Public Service Commission (MPSC) today approved a settlement agreement that enhances the customer protections for natural gas choice customers.

The settlement agreement authorizes Consumers Energy Company, Michigan Consolidated Gas Company, Michigan Gas Utilities Corporation, and SEMCO Energy Gas Company to revise their gas customer choice tariffs.

"My fellow Commissioners and I are pleased to approve this settlement agreement," said MPSC Chairman Orjiakor Isiogu.  "It significantly improves protections for gas choice customers."

Highlights of the changes include:

• Expanding protections to small commercial customers who use 500 thousand cubic feet (Mcf) or less per year.  Previously, only small commercial customers using up to 200 Mcf were covered by protections.
   
• Choice customers may terminate participation with an AGS at any time after the unconditional cancellation period, through verbal or written communication with the AGS.  The AGS is required to execute a customer's request for cancellation without delay, regardless of whether an early termination fee or other penalty is paid to the AGS.
  
  
• Customers enrolling through verbal means shall have the entire contract - including the rate, terms and conditions included in the contract -- provided to them in writing via U.S. mail or verifiable electronic mail.  The correspondence shall be postmarked within seven days of the customer's verbal enrollment.
  
  
• Customers enrolling through electronic means shall have the entire contract - including the rate, terms and conditions included in the contract -- provided to them in writing via U.S. mail and by verifiable electronic mail.  These correspondences shall be postmarked within seven days of the customer's electronic enrollment with the AGS.
  
  
• The maximum early termination fee for residential contracts for one year or less shall not exceed $50.  The maximum early termination fee for residential contracts of longer than one year shall not exceed $100.
  
  
• The maximum early termination fee for small commercial contracts of one year or less shall not exceed $150.  The maximum early termination fee for small commercial contracts or longer than one year shall not exceed $250.
  
  
• Contracts may continue after an initial term expiration on a month-to-month basis, cancelable at anytime without penalty.
  
  
• Any contract that is not signed by the customer or legally authorized person shall be considered null and void.  Only the customer account holder or legally authorized person shall be permitted to sign a contract.

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

Case No. U-15929