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Michigan and Gas Delivery Rates

Phillip Cross

Michigan and Gas Delivery Rates

The Michigan Public Service Commission has approved a rate increase of $143,531,000 for Consumers Energy Co. gas customers. It also approved a return on common equity (ROE) of 9.9%. Consumers had sought an increase of about $229 million in its retail rates for natural gas distribution over rates that were approved in August 2018 when the Commission approved a Consumers gas rate increase of $10.6 million. In awarding the significant increase on the heals of an earlier hike, it pointed out that Consumers Energy is expected to increase gas transmission and distribution infrastructure investments, accelerate the removal of at-risk lines...

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Replacing Lead Water Service Lines in Pennsylvania

Phillip Cross

Replacing Lead Water Service Lines in Pennsylvania

The Pennsylvania Public Utility Commission has adopted a settlement with Pennsylvania American Water Company (PAWC) approving the company’s plan to replace customer-owned lead service pipelines (LSPs) and recover associated costs. It said that the agreement puts in place the first such plan granted by the commission under a new state law aimed at finding a cost-effective way to replace LSPs in conjunction with the company’s main and company-owned LSP replacement program while avoiding health and safety concerns associated with partial lead service line replacements. The commission explained that a partial lead service line replacement may not significantly reduce the lead...

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Connecticut PURA Electric Grid Modernization Plan

Phillip Cross

Connecticut PURA  Electric Grid Modernization Plan

The Connecticut Public Utilities Regulatory Authority has approved a plan to modernize the state’s electric grid vision for the next several years, including a framework for achieving an “Equitable Modern Grid” to benefit all Connecticut ratepayers. It announced that the next steps on eleven near-term pathways identified by the decision begin in October of this year with all investigations targeted to realize four main objectives: support, or remove barriers to the growth of Connecticut’s green economy; enable a cost-effective, economy-wide transition to a decarbonized future; enhance customer access to a more resilient, reliable and secure electricity commodity; and advance the...

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Electric Service Time-of-Use Rate Pilot from ILL.CC

Phillip Cross

Electric Service Time-of-Use Rate Pilot from ILL.CC

The Illinois Commerce Commission has also approved an electric Residential Time of Use (TOU) Pricing Pilot proposed by the Commonwealth Edison Company. According to the commission, the rate is designed to incentivize residential ComEd customers to shift their energy use away from peak periods to times when energy and capacity costs are lower can be particularly beneficial for customers with high energy use which can be done at another “Off-Peak” time, such as charging an electric vehicle (“EV”). The pilot program will span four years and is intended to gauge ComEd customers’ interest in a TOU rate option. ComEd plans...

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Illinois's Natural Gas Delivery Rates – ROE Methods

Phillip Cross

Illinois's Natural Gas Delivery Rates – ROE Methods

The Illinois Commerce Commission has authorized Northern Illinois Gas Company to increase base rates by $167.7 million. In setting the company’s revenue requirement the commission adjusted Nicor’s proposed operational and capital costs, including the depreciation expenses, customer deposits amounts, and pension and other post-employment benefit expenses. The commission also approved a rate of return on equity (ROE) of 9.73%, which is lower than Nicor’s current authorized ROE of 9.8% and lower than Nicor’s ROE request of 9.86%. It rejected the Administrative Law Judge’s recommended ROE of 9.13%, finding it not reasonably sufficient to assure the confidence in the financial soundness...

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