LANSING – The Public Service Commission has approved a settlement agreement granting Consumers Energy Company a certificate of public convenience and necessity to construct natural gas facilities to serve new customers in Gaines Township in Kent County and Leighton Township in Allegan County.
Under the terms of the settlement (Case U-17645), the two townships grant the utility a franchise consent to serve certain sanctions and also agree the provision of natural gas service to those locations will serve the public convenience and necessity.
Consumers Energy proposed to install 5,280 feet of new gas main to serve some 20 potential customers along Patterson Avenue between 108th Street and 100th Ave; 7,800 feet of new gas main to serve some 61 potential customers on Patterson road south of 108th Street; and 7,150 feet of new gas main, the Commission noted in a statement.
CONSUMERS HIT WITH FINE: The commission also issued a minute action acknowledging its acceptance of an administrative consent agreement that Consumers Energy, USIC Locating Services, and the Commission have entered into regarding staking procedures. Under the terms of that agreement, the utility must pay a $90,000 civil fine within 30 and establish benchmarks regarding future project staking services and reports.
The Commission staff performed an investigation in 2013 of a complaint it had received alleging that USIC, a contractor of Consumers, did not properly follow applicable safety standards when performing staking services on behalf of the utility in 2012. In a December 2013 letter, the PSC determined the utility committed probable violations of the Michigan Gas Safety Standards and recommended a civil penalty.
As part of the consent agreement, excavators are to follow safe digging practices and USIC shall provide Consumers with $160,000 worth of project staking services between July 1, 2014 and January 31, 2015. Annual project staking reports must also be provide for the calendar years 2014 through 2016 by Consumers Energy to the Gas Operations Section of the PSC staff by March 15 of each subsequent year beginning in 2015 and ending in 2017.
CUSTOMER CREDIT FOR MICHIGAN POWER COMPANY: The PSC also approved a settlement (Case U-17524) authorizing Indiana Michigan Power Company to implement revised steam plant depreciation rates for its Rockport Unit 1 for financial reporting purposes effective June 1, 2015.
When the utility does so, it will reduce customer rates through credits, the PSC said in a statement. At that time, a residential customer using 500 kilowatt-hours of electricity per month will see a credit of 35 cents on their monthly bill until the utility next rate case is decided.
