S T A T E O F M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * *

Transcription

1 S T A T E O F M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * * In the matter of the application of ) MICHIGAN CONSOLIDATED GAS COMPANY ) for authority to extend the filing deadline for its ) Case No. U depreciation rate case and supporting study until ) the filing of its next general rate case. ) ) At the February 20, 2003 meeting of the Michigan Public Service Commission in Lansing, Michigan. PRESENT: Hon. Laura Chappelle, Chairman Hon. David A. Svanda, Commissioner Hon. Robert B. Nelson, Commissioner ORDER GRANTING EXTENSION In its December 19, 1997 order in Case No. U-11222, the Commission approved depreciation rates for Michigan Consolidated Gas Company (Mich Con). The Commission further directed Mich Con to file its next depreciation rate case, supported by a depreciation study, on or before October 31, On October 24, 2002, Mich Con filed an application requesting an extension of time to file the depreciation rate case and study required by the Commission s order in Case No. U Mich Con s application states that the Commission found the depreciation rates approved in Case No. U to be reasonable. The application also states that, according to an affidavit submitted by Paul D. Geick, Director and Strategic Business Unit Controller for Mich Con s parent company, DTE Energy, Mich Con recently performed a general study of its plant balances

2 and concluded that a complete depreciation study would not yield a material change in any of the depreciation rates approved in Case No. U Furthermore, the application points out that even if a detailed depreciation study were done, it would not have an immediate effect because the company does not have any plans to file for an increase in its base rates in the near future. On December 20, 2002, Attorney General Jennifer M. Granholm filed a response in opposition to the application. 1 The Commission has no basis for doubting Mich Con s representation that a recent general study of its plant balances indicates that a complete depreciation study would not yield a material change in the depreciation rates approved in Case No. U The Commission will therefore approve a request for a delay in filing a depreciation rate case until the filing of Mich Con s next general rate case or January 1, 2006, whichever occurs first. The Attorney General s objections do not provide a basis for denying the application. For the most part, the Attorney General objects to the fact that the depreciation rates approved in Case No. U have not yet been reflected in rates, a fact that will not be changed by denying or approving the request for an extension. Further, the Commission has not granted Mich Con s request that the filing be delayed indefinitely until the filing of its next general rate case. On the other hand, the Attorney General remains free to propose adjustments in the next rate case as appropriate to reflect Mich Con s delay in filing for approval of new depreciation rates. Mich Con should not interpret approval of its request for an extension as approval for its manner of handling the request. Mich Con has known for nearly five years that a depreciation study was due on or before October 31, 2002, yet it waited until a mere seven days before the deadline to file a request for an extension. Further, because its application requests a six-month Page 2 U On January 1, 2003, Michael A. Cox was sworn in as Attorney General.

3 extension if the Commission orders it to file a depreciation study, it implicitly acknowledges that it was not prepared to file a depreciation study in compliance with the Commission s prior order and also that it has known for approximately six months that it would not be prepared to do so even if the Commission were to deny its request. Mich Con should not assume that its failure to adhere to basic regulatory requirements in this and other respects will be without consequence. The Commission FINDS that: a. Jurisdiction is pursuant to 1909 PA 300, as amended, MCL et seq.; 1919 PA 419, as amended, MCL et seq.; 1939 PA 3, as amended, MCL et seq.; 1969 PA 306, as amended, MCL et seq.; and the Commission s Rules of Practice and Procedure, as amended, 1992 AACS, R et seq. b. Mich Con s request to extend the deadline for filing its depreciation rate case and study until it files its next general rate case is reasonable and should be approved with the proviso that the filing should occur no later than January 1, c. The public interest will be adequately protected without the time and expense of a public hearing. THEREFORE, IT IS ORDERED that Michigan Consolidated Gas Company s deadline for filing its depreciation rate case and supporting depreciation study shall be extended to the date upon which it files its next general rate case or January 1, 2006, whichever occurs first. The Commission reserves jurisdiction and may issue further orders as necessary. Page 3 U-13599

4 Any party desiring to appeal this order must do so in the appropriate court within 30 days after issuance and notice of this order, pursuant to MCL MICHIGAN PUBLIC SERVICE COMMISSION ( S E A L) /s/ Laura Chappelle Chairman /s/ David A. Svanda Commissioner By its action of February 20, /s/ Robert B. Nelson Commissioner /s/ Dorothy Wideman Its Executive Secretary Page 4 U-13599

5 THEREFORE, IT IS ORDERED that The Detroit Edison Company and Michigan Consolidated Gas Company shall file a report on the use of consecutiv estimated bills no later than March 31, The Commission reserves jurisdiction and may issue further orders as necessary. MICHIGAN PUBLIC SERVICE COMMISSION CorAnissioner By its~tioflmary 5,2003, Page 5 U-13699

6 PROOF OF SERVICE STATE OF MICHIGAN ) Case No. U-l 3699 County of lngham ) Laura L. Vogt being duly sworn, deposes and says that on February 6, 2003, A.D. she served a copy of the attached Order by mailing copies thereof by first class mail, postage prepaid, or by inter-departmental mail, to the persons as shown on the attached service list. 1 Laura L. Vhgt Subscribed and sworn to before me this 6 h day of February 2003 Notary Public, Ingham, County, Michigan My Commission expires August 16, 2004

7 MR. ROGER FISCHER 2330 SMALLEY STREET JACKSON MI DATABASE SERVICES LEXIS NEXIS P.O. BOX 933 DAYTON OH ALL ELECTRIC ORDERS PAGE: 1 DATE: 12/10/2002 CONSUMERS ENERGY COMPANY 2000 MICHIGAN NATIONAL TOWER LANSING MI MR. MICHAEL PETERS MICHIGAN ELECTRIC COOPERATIVE 2859 'W. JOLLY ROAD OKEMOS MI MR. PHILLIP CROSS PUBLIC UTILITIES REPORTS, INC BOONE BOULEVARD, SUITE 401 VIENNA VA MS. MONICA MARTINEZ SENATE DEMOCRATIC STAFF ROMNEY BUILDING LANSING ID MAIL MR. JOHN PESTLE VARNUM, RIDDERING, SCHMIDT & HOWLETT BRIDGEWATER PLACE P.O. BOX 352 GRAND RAPIDS MI

8 MR. DAN ROBERTS, MANAGER ALGER DELTA COOPERATIVE ELECTRIC ASSOCIATION 426 NORTH 9th STREET GLADSTONE. Ml MS. ANN K. BURTON, PRESIDENT ALPENA POWER COMPANY 310 NORTH ZNDAVENUE ALPENA. Ml MR. DICK ABDoo, CHAIRMAN a coo WISCONSIN ELECTRIC POWER COMPANY 231 WESTMlCHlGAN P.O. BOX 2046 MILWAUKEE. WI MR. DONALD WOZNIAK, MANAGER CLOVERLAND ELECTRIC COOPERATIVE HIGHWAY M-28, P.O. BOX 97 DAFTER, MI MR. DAVID w. JOOS, PRESIDENT a CHIEF EXEC, OFFICER, ELECTRIC CONSUMERS ENERGY COMPANY 212 W. MICHIGAN AVENUE JACKSON, Ml MR. BRUCE KING, EXEC. V.P. a GEN. MGR. CHERRYLAND ELECTRIC COOPERATIVE 5930 US-31 SOUTH, P.O. BOX 298 GRAWN. Ml MR. ANTHONY EARLEY, JR., PRESIDENl a CHIEF OPERATING OFFICER THE DETROIT EDISON COMPANY 2000 SECOND AVENUE DETROIT, MI MR. DONALD SAWRUK, PRESIDENT EDISON SAuLT ELECTRIC COMPANY 725 E. PORTAGE AVENUE SAULT STE. MARIE, MI MR. JON BELLGOWAN, PRESIDENT a CEO MIDWEST ENERGY COOPERATIVE 901 EASTSTATE STREET; P.O. BOX 127 CASSOPOLIS. Ml MR. COULTER BOYLE Ill, PRESIDENT AMERICAN ELECTRIC POWERCOMPANY ONE SUMMIT SQUARE P.O. BOX 60 FORT WAYNE, IN PAUL J. BROWER. STATE PRESIDENT-MICH. AMERICAN ELECTRIC POWER COMPANY 110 WEST MICHIGAN-SUITE 1000-A LANSING, Ml MR. GARY ERICKSON, PRESIDENT a CEO UPPER PENINSULA POWER COMPANY 600 LAKESHORE DRIVE; P.O. BOX 130 HOUGHTON, MI MR. JEROME L. LARSEN, PRESIDENT a CEO XCEL ENERGY,414 WEST HAMILTON AVENUE P. 0. BOX 8 EAU CLAIRE, WI MR. STEVEN L. BOEKMAN, PRESIDENT a CEO GREAT LAKES ENERGY COOPERATIVE,323 BOYNE AVE.; P. 0. BOX 70 BOYNE CIPI. Ml MR. LARRY L. WEYERS, CHAIRMAN a CEO WISCONSIN PUBLIC SERVICE CORP. 600 NORTH ADAMS; P.O. BOX GREEN BAY, WI MR. THOMAS HAARALA MANAGER THE ONTONAGON COUNTY REA ASSOC. 500 J.K. PAUL STREET ONTONAGON, Ml MR. BRIAN BURNS, PRESIDENT a CEO PRESQuE ISLE ELECTRIC a GAS COOPERATIVE, INC M-68 HIGHWAY; P.O. BOX 308 ONAWAY. Ml THOMAS W. STEVENSON, PRESIDENT a CEO WOLVERINE POWER SUPPLY WEST WATERGATE ROAD CADILLAC, Ml SCOTr BRAEGER. GENERAL MANAGER 8. CEO TRI-COUNTY ELECTRIC CO-OP 7973 E. GRAND RIVER AVE.; P.O. BOX 379 PORTLAND. Ml MR. MICHAEL KRAUSE, GEN. MANAGER THUMB ELECTRIC CO-OP 2231 MAIN ST. UBLY, MI MR. EDWARD MARTIN, PRESIDENT a ce0 WABASHVALLEY POWER ASSOCIATION 722 NORTH HIGH SCHOOL ROAD INDIANAPOLIS. IN JIM CYRULEWSKI, MANAGER MlCHlGAN ELECTRIC POWER COORD. CTR 1901 S. WAGNER ROAD ANN ARBOR, Ml C. J. MELCHIORS, MANAGER BAYFIELD ELECTRIC COOPERATIVE, INC, P. 0. BOX 68 IRON RIVER, WS