The Michigan Public Service Commission (MPSC) today approved a modified version of Michigan Consolidated Gas Company's proposed energy optimization (EO) plan and surcharges, as required by Public Act 295 of 2008.

Under the approved, modified EO plan, the utility is authorized to implement its EO surcharge beginning June 3 and thereafter.  The company originally requested a surcharge that would result in approximately $1.12 per month for the average residential natural gas customer using 100 hundred cubic feet (ccf).  However, because the company has been directed to make changes to its proposed EO plan, the exact amount of the surcharge is unknown at this time, but it will be less than what the utility originally requested.

Today's order excludes from the surcharge uncollectibles that the company sought to include.  Uncollectibles associated with the EO plan will be addressed in Mich Con's next general rate case.

In addition, the MPSC noted that Mich Con's proposed financial incentive mechanism is not proportional with additional energy savings above the statutory targets.  Therefore, the Commission is giving parties to this case 30 days to file new proposed financial incentive mechanisms. 

The collaborative established in Case No. U-15805 et al. that includes the participation of all electric and natural gas providers subject to the MPSC's jurisdiction under Public Act 295 will also evaluate Mich Con's EO program.  Energy efficiency experts, equipment installers, and other interested stakeholders have also been encouraged to participate in the collaborative.

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

Case No. U-15890