Michigan Public Service Commission Challenges Vector Pipeline's Rate Proposal

Strategic Insights -

The Michigan Public Service Commission has submitted an answer to the Federal Energy Regulatory Commission's (FERC) proceeding regarding Vector Pipeline's rate proposal. In its answer, the Commission challenges Vector's claim that FERC cannot grant an immediate rate reduction without giving "reasoned consideration" to the evidence Vector will present in its testimony. The Commission argues that Vector's testimony confirms there are no disputes regarding the facts relevant to the motion, and it respectfully requests that FERC accept its answer.

Key Takeaways:

  • The Michigan Public Service Commission (Michigan PSC) has submitted an answer to FERC's proceeding regarding Vector Pipeline's rate proposal.
  • Vector Pipeline claims that FERC cannot grant an immediate rate reduction without giving "reasoned consideration" to the evidence Vector will present in its testimony.
  • The Commission argues that Vector's testimony confirms there are no disputes regarding the facts relevant to the motion.
  • The Commission requests FERC to expedite its approval of the trial staff's motion for an immediate rate reduction.
  • Vector's testimony demonstrates that the over-recovery is even larger than that relied upon by Commission Trial Staff in support of its motion for an immediate rate reduction.
  • Approval of the trial staff's motion will lower the refund floor applicable to any section 4 rate increase by $45 million per year.

Statistics:

  • Vector's actual cost-of-service including a 14.5% return on equity was $91,959,409 for the 12-months ended August 31, 2024.
  • Vector's total cost-of-service as adjusted for known and measurable changes, for the period ended December 31, 2024, was $87,111,542.
  • The resulting $45,927,459 over-recovery is even larger than that relied upon by Commission Trial Staff in support of its motion for an immediate rate reduction.
  • The number of patent applications received by the Patent and Trademark Office each year (2012-2022) is 560,918, 557,221, 555,097, 554,458, 553,037, 555,995, 569,500, 553,670, 555,895 and 562,214 respectively.
  • Total revenue as adjusted, during the same period, $133,039,001.

Sources:

  • Docket No. RP24-971-000
  • 18 C.F.R. § 385.213(a)(2)
  • Columbia Gas Transmission, LLC, 191 FERC P 61,090 (2025)
  • Columbia Gas Transmission, LLC, 191 FERC P 61,079 (2025)