Michigan Rejects LDC Capacity - Release Sharing
The Michigan Public Service Commission (PSC) has rejected a proposal by Michigan Gas Utilities, a local distribution company (LDC), to implement a 70/30 sharing mechanism for capacity-release revenue. (The LDC currently credits all such revenues to its customers through a gas-cost recovery mechanism.)
The PSC found the LDC's incentive plan lacking in safeguards to ensure that the company does not earn a windfall profit at the expense of ratepayers.