Gas Programs

A few basic components of the MISEC "Gas Customer Choice Program (GCC)" are as follows:

• Participation in the program is voluntary.
• There are no limits as to the size of customers that may participate.
• The Gas Customer Choice Program(s) requires that any customer participating in the program sign-up for a minimum enrollment term of one year and that the program term must expire on March 31.
• You may select your supplier, but once you have chosen a supplier, there is a fee if you switch again. In addition, the supplier contract you signed may have a penalty for early termination.
• Customers may return to their utility sales service at a market-based rate if they decide to return to the utility.
  

Service under this program begins on April 1 or on the first of each month following enrollment. Generally, customers that are submitted and approved at least seven working days before the end of the month will be served in the following month.

Your existing utility will still be responsible for installing, operating and maintaining their gas distribution system. They will still respond to any gas leak, fire or other emergency situation. They will also continue to be responsible for reading your gas meter, rendering your gas bill, and responding to credit issues. Your utility bill will also include the gas charges from the selected supplier.

Michigan Public Service Commission has designed this program so that if any supplier did not send gas for a customer, they would financially penalize that supplier. The utilities have required suppliers to make financial deposits that assure that these penalties would be paid. Due to this penalty feature even if a supplier failed to flow gas, your utility will continue to flow gas to the customer.

Utilities make their money based on the value of the assets it has placed in service over the years. It does not earn any money on the actual gas commodity that it delivers to the customer. In the past, gas costs were simply a flow through cost that the customer pays. As a result, utilities historically have not had the incentive to find the most economical gas supply. Over the past few years, utilities across the country have encouraged marketers to supply their customers with natural gas. The utilities are still paid the same "margin" or earn the same amount for use of their facilities. But, competition drives suppliers to find more innovative and economical ways of supplying their customers with the actual gas commodity.