Skip Navigation
LARA: Michigan Department of Licensing and Regulatory AffairsMichigan.gov: Official Web Site for the State of Michigan
Michigan.gov Home MPSC Home | Contact MPSC | Sitemap | FAQ | 

MichPSC-Natural Gas Transportation History
Gas Utility Transportation Programs
time line Description and History
  Utility Transportation Tariff History by MPSC case
  U-13730   Consumers Energy Company Rate Case
  U-13575   Semco Energy Gas Company Rate Case
  U-13470   Aquila Networks - MGU Rate Case
  U-13000   Consumers Energy Company Rate Case
Gas Utility Transportation Programs in Michigan - this section links to Gas Customer Choice Programs that are detailed on other pages on this site U-13694   Gas Supplier Licensing Procedures
U-13305   SEMCO Energy Gas Company Customer Choice Program
U-13232   Aquila Customer Choice Program
U-13155   MichCon Gas Company Customer Choice Program
U-12761   MichCon Gas Company Customer Choice Program
U-12680   Consumers Energy Company Customer Choice Program
U-12550   Collaborative process to revise Customer Choice
U-11776   SEMCO Energy Gas Company Customer Choice Program
U-11682   MichCon Gas Company Customer Choice Pilot Program
U-11599   Consumers Energy Company Customer Choice Pilot Program
Gas Utility Transportation Programs in Michigan - go to page 1 for summaries of recent cases U-13365   Northern States Power-Wisc. d/b/a Xcel Energy Gas Transportation Tariffs
U-12741   Wisconsin Public Service Corp Gas Transportation Tariffs
U-11220   SEMCO Energy Gas Company Rate Case
U-10960   Michigan Gas Utilities Rate Case
U-10755   Consumers Energy Company Rate Case
U-10150   Michigan Consolidated Gas Company Rate Case
Gas Utility Transportation Programs in Michigan - you are currently on page 2, which summarizes these cases U-9323   Michigan Gas Company Gas Transportation Service Program
U-8822   Southeastern Michigan Gas Company Gas Transportation Program
U-8788   Michigan Gas Utilities Company Gas Transportation Program
U-8924   Consumers Power Company Gas Transportation Program
U-8635   MichCon Gas Company Gas Transportation Program
U-7991   ABATE Petition for Rulemaking - dismissed
prior to 1989  
In addition to sales service, most of the twelve natural gas utilities in Michigan offer services to transport natural gas owned by others. These pages summarize those transportation services. For current transportation rates, see the current rate books.
Gas Utility Transportation Programs in Michigan - go to page 3 for summaries of oldest cases Other Utility Transportation Programs and Issues
Utilities without Transportation Tariffs   Special Contracts   under Act 3
Gas Storage Rates
  Gas Bypass
Gas Diversion
  Off-System Transmission Rate
Special Discounted Rates   Miscellaneous Notes

Gas Choice programs   Standards of Conduct   Compare Gas Choice pilot programs   Gas Choice statistics

    U-9323: Michigan Gas Company Gas Transportation Service Program:
  • April 14, 1989 Michigan Gas Company (now part of SEMCO Energy Gas Company) filed an application for authority to increase its rates and to develop appropriate rates, charges, and conditions of service for the provision of gas transportation service.
  • June 29, 1990 the Commission issued its final order U-9323 (reference MPSC Orders page, U-9323 Order). The Commission established two transportation rate classes: 1) Interruptible Transportation Service (ITS) Rate, and 2) Firm Transportation Service (FTS) Rate. To be eligible for Rate ITS customers had to have complete standby equipment, maintained in good operating condition, and have sufficient stock on hand to able to comply with a complete curtailment with only 2 hours advance notice. Rates ITS and FTS included the following provisions:
    • All customers are eligible to participate in the transportation program.
    • Transportation Charges:
  • Rate ITS $0.4218 per Mcf
    Rate FTS $0.4893 per Mcf
    • Monthly Customer Charge $1,000
    • Use and Loss: Michigan Gas Company shall retain .89% of all gas received to compensate it for the company-use and lost-and-unaccounted-for gas.
    • System Supply Entitlement Charge: Optional backup service only available to Rate FTS customers at $1.50 per Mcf, Company could discount down to $0.10 per Mcf.
    • Monthly Load Balancing: No charge for positive or negative cumulative imbalances less than 5% of customer's cumulative monthly nominations. Positive or negative cumulative imbalances greater than 5% but less than 10% of customer's cumulative monthly nominations would be charged at a rate of $0.12 per Mcf. Positive imbalances greater than 10% of customer's cumulative nominations would be charged at a rate of $2.00 per Mcf in addition to all other applicable charges. Negative imbalances greater than 10% of customer's cumulative nominations would be charged at a rate of $10.00 per Mcf in addition to all other applicable charges
    • Customers that choose to take service under Rates ITS or FTS are prohibited from taking sales service for five years.
    • No assignment of upstream pipeline capacity.
    • Transportation customers are subject to take-or-pay charges as approved by the Commission for recovery.


end of section squiggle graphic
 
Return to top
  U-8822: Southeastern Michigan Gas Company gas transportation program:
  • June 30, 1987 the Commission initiated Case No U-8822 to investigate and develop appropriate rates, charges, and conditions of service for Southeastern (now part of SEMCO Energy Gas Company) relating to its provision of gas transportation service (reference MPSC Orders page, U-8822 Order). Southeastern filed testimony requesting authority to implement transportation tariffs and hearings were held. On April 11, 1988, a jointly sponsored stipulation signed by all the parties to the case, except Amoco, was admitted into evidence. (Amoco stated that it did not object to the stipulation). The stipulation provided for the dismissal of the case and deferred the matter of transportation tariffs until Southeastern's next rate case, which was U-11220, filed on December 10, 1996. The stipulation required Southeastern to continue providing transportation service to its end users under Act 9 of 1929 contracts, subject to system capacity restrictions. Southeastern continued to provide transportation service under Act 9 until October, 1997. The Act 9 contracts generally provided transportation service end users at a rate equal to the rates the customers would have paid if the service was provided under one of Southeastern's sales tariffs, excluding the Gas Cost Recovery Factor. Southeastern's objective was to be "revenue neutral" as to whether a customer would choose sales or transportation service.
  • May 10, 1988 case dismissed (reference MPSC Orders page, U-8822 Order).

end of section squiggle graphic
 
Return to top
  U-8788: Michigan Gas Utilities Company Gas Transportation Service Program:
  • April 21, 1987 the Commission initiated Case No U-8788 to investigate and develop appropriate rates, charges, and conditions of service for the provision of gas transportation service on MGU (reference MPSC Orders page, U-8788 Order). Unlike the MichCon and Consumers transportation cases this case was not combined with a rate case, therefore transportation rates were designed to be "revenue neutral" - MGU would be economically indifferent whether a customer chose sales or transportation service.
  • April 20, 1989 the Commission issued its final order U-8788 (reference MPSC Orders page, U-8788 Order). The Commission established two transportation rate classes: 1) Rate T-1 for firm transportation service and 2) Rate T-2 for interruptible transportation service. The T-1 transportation charge was set at the distribution charge, less $0.0582 per Mcf and plus all applicable surcharges, specified under the designated service rate for all gas redelivered. The T-2 rate was the distribution charge specified in the interruptible sales rate, less $0.0582 per Mcf and plus all applicable surcharges, for all gas redelivered. Other Rate T-1 provision were:
    • All customers are eligible to participate in the transportation program.
    • Monthly Customer Charge as stated in designated sales rate.
        Monthly Administrative Fee $800
        Monthly Remote Meter Charge $80
    • Use and Loss: MGU shall retain .75% of all gas received to compensate it for the company-use and lost-and-unaccounted-for gas.
    • Customers that choose to take service under Rates T-1 or T-2 are prohibited from taking sales service for five years.
    • Unauthorized Gas Usage Charge of $10 per Mcf for all gas taken by the customer in excess of the cumulative volume delivered to the Company on behalf of the customer.
    • Storage Charge: Customer may store up to 10% of the Annual Contract Quantity without charge; month end balances that exceed 10% of the ACQ will be charged a storage charge of $0.10 per Mcf per month.
    • System Supply Entitlement Charge (Optional): Backup service only available to Rate Firm Transportation Service customers at a maximum rate of $1.50 per Mcf, discountable down to $0.20 per Mcf.
    • Transition Charge: Maximum of $0.50 per Mcf, discountable to $0.00 per Mcf, applied to all transportation customers volumes for the recovery of take-or-pay costs, minimum bill costs, and excess pipeline fixed costs.
    • No assignment of upstream pipeline capacity.
    • All customers are eligible to participate in the transportation program.

end of section squiggle graphic

Return to top

  U-8924: Consumers Power Company Gas Transportation Program:
  • February 19, 1987 the Commission initiated Case No U-8678 to investigate and develop appropriate rates, charges, and conditions of service for the provision of Consumers' (now Consumers Energy Company) gas transportation service (reference MPSC Orders page, U-8768 Order page 35).
  • December 7, 1989 the Commission issued its final order (U-8678, U-8924, and U-9197) in the combined transportation and rate case (reference MPSC Orders page, U-8924 Order). The Commission established two transportation rate classes: 1) Rate T-1 with a cost-of-service-based transportation charge and 2) Rate T-2 with a market-based transportation charge. The T-1 transportation charge was set at $0.4734 per Mcf, while the T-2 rate was negotiated by Consumers and the customer within a maximum of $0.7101 per Mcf to a minimum of $0.2367 per Mcf (approximately 50% above and below the T-1 rate). Except for the transportation charges, Rates T-1 and T-2 were identical in every respect and included the following rates and provisions:
    • All customers are eligible to participate in the transportation program.
Monthly Customer Charge $1,000
Monthly Administrative Fee $300
    • Use and Loss: Consumers shall retain 1.03% of all gas received to compensate it for the company-use and lost-and-unaccounted-for gas.
    • Customers that choose to take service under Rates T-1 or T-2 are prohibited from taking sales service for five years.
    • Unauthorized Gas Usage Charge of $10 per Mcf for all gas taken by the customer in excess of the cumulative volume delivered to the Company on behalf of the customer.
    • Monthly Load Balancing: Customer may store up to 8.5% of the Annual Contract Quantity without charge; month end balances that exceed 8.5% of the ACQ will be charged a storage charge of $0.041 per Mcf per month, plus 2.0% fuel injection charge.
    • System Supply Entitlement Charge (Optional): Customers have the choice of purchasing backup service at a maximum rate of $1.00 per Mcf, discountable down to $0.10 per Mcf.
    • Take-or-Pay: Transportation customers are subject to take-or-pay charges as approved by the Commission for recovery.
    • No assignment of upstream pipeline capacity.


end of section squiggle graphic
 
Return to top
  U-8635: Michigan Consolidated Gas Company Gas Transportation Service Program.
  • December 17, 1986 the Commission issued an Order and Notice of Hearing to commence a contested case proceeding regarding gas transportation service and related matters on the MichCon system (reference MPSC Orders page, U-8635 Order). This case was eventually merged with Rate Case No. U-8812.
  • December 22, 1988 the Commission issued its final Order (U-8635, U-8812, and U-8854) in the combined transportation and rate case (reference MPSC Orders page, U-8635 Order). The Commission established two transportation rate classes: 1) Rate T-1 with a cost-of-service-based transportation charge and 2) Rate T-2 with a market-based transportation charge. The T-1 transportation charge was set at $0.452 per Mcf, while the T-2 rate was negotiated by MichCon and the customer within a maximum of $0.67 per Mcf to a minimum of $0.23 per Mcf (approximately 50% above and below the T-1 rate). Except for the transportation charges, Rates T-1 and T-2 were identical in every respect and included the following rates and provisions:
    • All customers are eligible to participate in the transportation program.
Monthly Customer Charge $1,000
Monthly Administrative Fee $300
    • Use and Loss: MichCon shall retain 1.78% of all gas received to compensate it for the company-use and lost-and-unaccounted-for gas.
    • Customers that choose to take service under Rates T-1 or T-2 are prohibited from taking sales service for five years.
    • Unauthorized Gas Usage Charge of $10 per Mcf for all gas taken by the customer in excess of the cumulative volume delivered to the Company on behalf of the customer.
    • Monthly Load Balancing: Customer may store up to 10% of the Annual Contract Quantity without charge; month end balances that exceed 10% of the ACQ will be charged a storage charge of $0.0285 per Mcf per month, plus 0.9% fuel injection charge.
    • System Supply Entitlement Charge (Optional): Customers have the choice of purchasing backup service at a maximum rate of $2.00 per Mcf, discountable down to $0.30 per Mcf.
    • Transportation customers are subject to take-or-pay charges as approved by the Commission for recovery.
    • No assignment of upstream pipeline capacity.
end of section squiggle graphic
 
Return to top

  U-7991: December 17, 1986 the Commission dismissed the Petition for Rulemaking by the Association of Businesses Advocating Tariff Equity (reference MPSC Orders page, U-7991 Order). This case was a generic proceeding to investigate gas transportation in Michigan. In its order the Commission held that:

  • The investigation of gas transportation initiated by this proceeding should be closed.
  • Rulemaking is not an appropriate method for developing a new gas transportation policy.
  • The new gas transportation policy should be developed through a case-by-case approach that would allow the Commission flexibility to address issues that are unique to each gas utility.
end of section squiggle graphic
 
Return to top
Prior to 1989

Beginning in December of 1988, the Commission used its general rate making authority to establish transportation tariffs for Michigan Consolidated Gas Company, then for Consumers Power Company (now Consumers Energy Company), Michigan Gas Utilities Company, Michigan Gas Company (now SEMCO Energy Gas Company), Southeastern Michigan Gas Company (now SEMCO Energy Gas Company), and Wisconsin Public Service Corporation. Prior to the Commission establishing transportation tariffs under the Commission general rate making authority under Act 3 of 1939, utilities in Michigan offered transportation service under individual contracts pursuant to Act 9 of 1929 and/or Special Contracts approved by the Commission pursuant to Act 300 of 1909. Peninsular Gas Company and Northern States Power Company (now Xcel Energy) still offer transportation service to end-users through individual contracts pursuant to Act 9 of 1929, or Special Contracts approved by the Commission.

November 13, 1986:

 
end of section squiggle graphic
 
Return to top
Page Before - Gas Utility Transportation Programs in Michigan - page 1 page 1 ... Next Page - Gas Utility Transportation Programs in Michigan - page 3page 3 ...

Bullet


Michigan.gov Home | MPSC Home | LARA Home
Accessibility Policy | Link Policy | Privacy Policy | Security Policy | Michigan News | Michigan.gov Survey


Copyright © 2001-2013 State of Michigan
Updated: Sep 14, 2011