LANSING – The average Michigan Consolidated Gas customer will pay about 5 cents a month more after the Public Service Commission approved a $19.9 million rate hike. The final rate increase is substantially less than the $76.7 million increase the utility had requested in April.

The agreement (case No. U-16999) provides MichCon a 10.5 percent rate of return. The order also ended MichCon’s current uncollectible expense system and revenue decoupling mechanism.

The utility has to file a new uncollectible expense true-up mechanism by March 31 with a new base assumption of $69.9 million. A new revenue decoupling mechanism is due to be implemented November 1.

GAS DELIVERY: Consumers Energy natural gas customers will see their bills go up in February, March and April to cover the additional $15.65 million the PSC allowed the utility to collect through its pilot rate decoupling program. The plan separates the utility’s fixed gas delivery costs from its per-unit gas sales.Mo< The commission found (case No. U-16860) that Consumers had under-collected Between June 2010 and May 2011.M.o< ENERGY OPTIMIZATION: American Electric Power, still filed with the PSC as Indiana-Michigan Power, will increase residential rates about 42 cents a month to cover losses from its 2011 energy optimization plan (case No. U-16739). Detroit Edison customers will see rates increase 3 cents a month to cover changes it is energy optimization program (case No. U-17049).

SUMMER POWER: The PSC has ordered the utilities to provide their annual assessment of peak need and plans for meeting that need by March 29. Comments on the plans (case No. U-17178) are due by April 19 to [email protected]. The commission is specifically requesting comment from the Midwest Independent Transmission Operator, PJM Interconnection, and other transmission services providers.

NET METERING: Smaller electric customers generating some of their own power now have a process to be reimbursed for any excess power they generate. The commission adopted the agreements and forms for Category 1 and Category 2 customers, essentially those using and generating less than 150 kilowatts of power (case No. U-15919). Larger customers will be addressed in a future order, the commission said.M.

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