|
|
Welcome to the June edition of the MPSC Spotlight. This issue of the MPSC’s monthly newsletter has information about recent public meetings the Commission held to hear from utility customers, locking in contracts for propane, what to know about alternative gas suppliers, and more.
|
|
The MPSC was interested in gathering input from the public who attended two meetings held last month, one in Gaylord in the northern lower peninsula and one in the city of Detroit. Both sessions provided significant feedback to Commissioners about the reliability and affordability of Michigan’s energy systems.
The Commission held a hearing May 21 on the response to the catastrophic ice storm that caused widespread damage to infrastructure and significant power outages across more than a dozen northern Michigan counties in late March. More than 50 people attended the meeting at Ellison Place in Gaylord.
The Commission heard from utility customers frustrated with the length of time it took to get power and communications restored, and the feelings of fear and isolation residents felt as fallen trees knocked out power, phone and internet service and made roads impassable, and the difficulty of getting food, warm shelter and gasoline and propane refills amid all the recovery effort. Residents also expressed gratitude for the hard work of utility crews and others who worked around the clock to get services back and offered suggestions on how to improve the power grid, including burying distribution lines underground. As a result of this input and other pilots recently completed by the utilities and research conducted by the Commission, the MPSC will be holding a technical conference to explore the costs and benefits associated with undergrounding overhead electrical infrastructure. Stay tuned for more details on the timing and agenda.
|
|
|
|
On May 29, the Commission held a town hall meeting in Detroit, this time with a small-group format with the audience of about 75 people divided into three discussion groups, each one moderated by one of the MPSC’s three Commissioners.
The Commission found this new format a useful way to have deeper conversations about utility reliability issues and the affordability concerns that drove attendance at the town hall, held at Cadillac Place in Detroit’s New Center neighborhood. Attendees expressed frustrations with the frequency of rate increases for utilities and service outages, but many also said they appreciated the chance to have a direct back-and-forth with Commissioners and learned about what’s involved in utility regulation from presentations by the MPSC and its Staff, as well as representatives from Attorney General Dana Nessel’s office and the Utility Consumer Participation Board, which grants funding to nonprofit organizations that represent residential utility customers so they can participate in energy proceedings before the MPSC.
Commissioners will take the input from both meetings and apply them to future work to address utility grid reliability and resilience and affordability matters.
|
|
|
The Commission on June 12 outlined multiple areas of performance improvements it expects the state’s two largest electric utilities to focus on, spurred on by results from the first-ever comprehensive, third-party audit of the energy companies’ equipment and operations.
The findings of the audit, released in September 2024, include 67 observations relating to the distribution systems of Consumers Energy Co. and DTE Electric Co., 148 conclusions on the state of the two utilities’ respective grids, and 75 specific recommendations to guide significant improvements to lagging reliability and slow service restoration times. The order takes action on each of the 75 recommendations, detailing how improvements in these areas will be embedded in future rate cases, distribution planning cases, and other matters before the MPSC.
The Commission outlined areas where each utility should improve, including:
- Continued expansion of available resources to address downed wires and filing information with the MPSC on personnel, protocols, policies and procedures, and education efforts, among others, relating to how the companies address downed wires to ensure public safety.
- Regular tree trimming, a significant means of improving reliability because fallen limbs and branches remain the leading cause of outages.
- Rigorous analysis of various alternatives, including finding the right balance of capital spending vs. operations and maintenance spending and tree trimming, to meet reliability goals as cost-effectively as possible.
- The importance of alignment between requests for cost recovery in rate cases and previously filed electric distribution plans, with full explanation of any changes, including evidence and rationale.
- Prioritizing equipment replacement programs based on inspections and the actual condition of the equipment instead of solely on age of facilities.
Learn more about the Commission’s action in its issue brief, news release and in its order in Case No. U-21305.
With summer’s warm temperatures here, it may not seem like time to think about propane for the winter. But propane suppliers say now is the time for propane customers to begin locking in contracts to ensure they get a good price for the next home heating season.
The MPSC encourages Michigan’s 320,000 households that heat with propane to shop around now for the best deals and to research options, ask questions about contracts and get terms in writing. Those who wait until later in the year risk surprise higher costs.
Some things customers should know before they shop:
Here’s what customers should know before shopping for propane:
- Propane suppliers offer budget plans and pre-buy and fixed-price plans that can save consumers money compared to market prices later in the season. Make sure you know the size of your propane tank and your average propane use – this information can help customers avoid not buying enough or buying too much. In addition, customers should know that prices may increase after the prepaid allotment is used up.
- Get answers to important questions you may have before you sign a contract. Some of those questions might include what service, budget and payment options are available, how prices are determined, what fees may be charged, how often tanks will be refilled, and how much advance time is needed for delivery outside a normal schedule.
- Make sure you understand potential fees, including fees for installation, service, pickup or disconnection, lease or equipment rental, and minimum usage requirements. Ask for details before you sign a contract because these additional fees may increase out-of-pocket costs.
- Calculate whether it’s more economical to rent or lease a tank from a propane provider or own a tank. Renting or leasing a tank means safety and maintenance is the responsibility of the provider. Owning a tank can save money but leaves the responsibility for upkeep on the customer.
Financial assistance and other resources are available for households struggling to pay energy costs. One place to start is the MPSC’s webpage for customer utility assistance at www.michigan.gov/mpsc/gethelp. You also may contact Michigan 211 by calling 211 or going to www.mi211.org. Michigan 211 is a free, confidential service that connects Michiganders with a range of assistance programs and services including help with food, housing, transportation and home energy bills. More information on energy assistance is available through the MPSC’s tip sheet on applying for energy assistance.
For additional tips and consumer information, check out the MPSC’s propane consumer tip sheet.
|
Under Michigan’s Gas Customer Choice program, you can choose to get your natural gas from licensed alternative gas suppliers (AGS).
If you’re a customer of Consumers Energy, DTE Gas, Michigan Gas Utilities or SEMCO Energy, you can voluntarily select an AGS, which is a separate supplier from your gas utility. They offer different prices and different terms and conditions to provide natural gas. They’re required by law to be licensed by the MPSC, and their charges will show up on your bill from your utility, but the Commission does not regulate their rates.
The MPSC encourages folks considering switching their supplier to be careful and make sure you understand price, terms and conditions before signing a contract, just as you would for any product or service.
To learn more, check out our tip sheet on Gas Customer Choice. Our Gas Customer Choice webpage also has more information, including lists of licensed AGSs in each utility’s service territory and rate comparisons.
|
|
|
The MPSC was a co-host of the National Utilities Diversity Council’s Motown Momentum Medley conference, which brought hundreds of people to downtown Detroit for the organization’s annual event.
Chair Dan Scripps gave welcoming remarks, and Commissioners Katherine Peretick and Alessandra Carreon served as moderators on panels discussing issues at the conference. Commissioner Peretick moderated a panel titled “Adapting Utility Assistance Programs and Rates for a Decarbonized Future,” and Commissioner Carreon moderated a panel titled “DEIB — Reclaiming the Narrative When the Challenge Is Real.”
The event was held May 29 at the headquarters of DTE Energy. The NUDC works to educate, develop best practices and guide efforts that will promote diversity in the utilities and communications industries in the areas of governance, employment, procurement, language access/customer service, and philanthropy.
Here are details about orders the Commission approved at its June 12 Commission meeting:
- The MPSC approved Consumers Energy’s application for accounting authority to defer operations and maintenance (O&M) expenses associated with the catastrophic ice storm that paralyzed northern Michigan in March and subsequent severe weather that included 14 tornadoes (Case No. U-21914). The severe weather caused widespread damage to Consumers’ electric grid, requiring restoration of 7,600 downed wires, 636 transformers, 1,810 poles and 220 miles of power lines at an estimated cost of $96 million; the company’s total approved O&M budget for calendar year 2025 is $125 million. The Commission approved the company’s request for deferral of the costs as a regulatory asset to be reviewed for recovery in a future rate case. The approval is for accounting purposes only.
- The Commission is seeking additional briefing on the impacts of the proposed route of a major electric transmission line sought by Michigan Electric Transmission Co. (METC) (Case No. U-21471). METC in 2024 applied for certificates of public convenience and necessity for a 39.5-mile, 345 kilovolt (kV) double circuit transmission line between the Nelson Road Substation in New Haven Township in Gratiot County and the Oneida Substation in Oneida Township in Eaton County, and a 55-mile, 345 kV double circuit transmission line between a proposed new Helix Substation in Clarence Township in Calhoun County and the Michigan/Indiana border in Gilead Township in Branch County (“Helix-Hiple”). The Commission noted evidence showing METC’s proposed Helix-Hiple route runs through a rural airport, while an alternative route sidesteps the airport but requires more new right-of-way, has more residences within 500 feet, crosses more parcels and has more archeological sites within the right-of-way. The Commission seeks supplemental briefing on the reasonableness of the Helix-Hiple route’s impact to the airport and the reasonableness of the social impacts of the alternative route. The additional briefings, limited to 15 pages, must be filed by June 26, 2025.
 |
The MPSC launched a new podcast this year called Behind the Meter, exploring in detail important energy and telecommunications issues impacting Michiganders, from understanding rate cases to expanding broadband and preparing for severe weather. MPSC Chief Operating Officer Mike Byrne is host, and there are guests each month including Commissioners and experts in various fields. We hope you’ll check it out. Episodes are available at the MPSC’s podcast webpage and wherever you find podcasts.
|
|
|
Have a utility complaint, or need help with your utility service? We’re here to help. Submit your complaint or inquiry online or call 800-292-9555.
The mission of the Michigan Public Service Commission is to serve the public by ensuring safe, reliable, and accessible energy and telecommunications services at reasonable rates.
Michigan Public Service Commission
517-284-8100
7109 W. Saginaw Hwy,
Lansing, MI 48917
Stay Connected with Us!
|
|
|
|
|
