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Gas Utility Ordered to Evaluate Alternatives to Fixed Price Hedging for Gas Supply
The Michigan PSC ordered DTE Gas, “to evaluate the stability benefits of the VCA program, and alternatives thereto, with the overall cost to its customers to determine whether improvements to better balance the benefits and costs of the hedging program are necessary in future GCR proceedings.”
“Beginning with the company’s next gas cost recovery plan, DTE Gas Company shall evaluate the stability benefits of its volume cost average program, and alternatives thereto, with the overall cost to its customers to determine whether improvements to better balance the benefits and costs of the hedging program are necessary as described in this order.”
As reported previously, the AG had alleged that DTE Gas’s current fixed-price gas purchase program, “is extremely costly and provides marginal reductions in cost of gas variability from to [sic] month to month and year to year versus other programs.”
Case U-21608
