Energy Optimization FAQ
How much is the Charge?
When will these charges begin?
What is SEMCO going to do with this Money?
What is the goal of this program?
Why did SEMCO ENERGY GAS COMPANY choose the
Independent Energy Optimization Program Administrator to provide
services rather than performing that function "in house"?
How can I access the programs provided by
the Independent Energy Optimization Program Administrator?
Will this money be used only for SEMCO customers?
How much money overall will SEMCO collect
for this program?
Who can I complain to about these programs?
I read a news article that said you were
"allowed" to assess this charge, not "mandated" to assess this charge?
Do DTE and Consumers have similar charges
on their bills?
What can you tell me about renewable energy
and other items detailed in the legislation?
Can you take this charge off my bill?
Who determines the chargeable rate?
Why are SEMCO's rates different than MichCon
and Consumers?
Q How much is the
Charge? Top
A The charge varies based on the type of customer.
Residential
Customers - $0.0152 (one and a half cents) per Ccf. This
equates to approximately $15 per year
for an average residential customer.
Commercial
Customers
For
a small commercial customer - GS 1 - the cost is $2.41 per month
For
a medium commercial customer - GS 2 - the cost is $13.94 per month
For
a large commercial customer - GS 3 - the cost is $66.09 per month
Transportation
Customers
TR-1
$30.56 per month
TR-2
$93.98 per month
TR-3
$197.26 per month
Q When
will these charges begin? Top
A The charges will
begin with the first billing cycle in July.
Q What
is SEMCO going to do with this Money? Top
A SEMCO
ENERGY will turn this money over to the Independent Energy
Optimization Program Administrator to design and offer energy optimization
programs for SEMCO ENERGY GAS COMPANY customers.
Q What
is the goal of this program? Top
A The goal of the
Energy Optimization program is to promote energy conservation and
provide resources to help customers use energy more efficiently.
Ultimately customers who choose to take advantage of these programs
are likely to use less energy and consequently their energy bills
should be lower.
Q Why
did SEMCO ENERGY GAS COMPANY choose the Independent Energy Optimization
Program Administrator to provide services rather than performing
that function "in house"? Top
A SEMCO ENERGY
believes it is more efficient to have an administrator who may be
developing plans for several different companies, rather than trying
to design and implement a program ourselves.
Q How
can I access the programs provided by the Independent Energy Optimization
Program Administrator? Top
A SEMCO ENERGY
does not believe that the state has selected the provider for these
services yet. Once a provider is selected an the programs are developed,
we will provide information to our customers on how to access these
programs.
Q Will
this money be used only for SEMCO customers? Top
A Yes. The money collected
from SEMCO ENERGY customers will be used for programs
developed for SEMCO ENERGY customers.
Q How
much money overall will SEMCO collect for this program? Top
A Between July 2009
and December 2011, we expect to collect approximately $14 million
for energy optimization programs.
Q Who
can I complain to about these programs? Top
A The Energy Optimization
charges on the bill are a direct result of Public Act 295
(PA 295) that was signed into law in October 2008. SEMCO
ENERGY suggests you contact your state senator and/or your state
representative to discuss this law.
Q I
read a news article that said you were "allowed" to assess this
charge, not "mandated" to assess this charge? Top
A The media have reported
some conflicting information on this issue. Public Act 295
mandates that utilities offer these programs and place a charge
on customers' bills to fund the programs.
Q Do
DTE and Consumers have similar charges on their bills? Top
A The legislation
dictated that all utilities in the state offer an Energy Optimization
program. We don't have details on other utility programs. For
more information, you should contact them directly.
Q What
can you tell me about renewable energy and other items detailed
in the legislation? Top
A SEMCO ENERGY does
not have any information about the provisions in the legislation
that don't pertain to natural gas utilities. SEMCO ENERGY suggests
you call your local electric utility, or your state senator and/or
your state representative for more information.
Q Can
you take this charge off my bill? Top
A Unfortunately SEMCO
ENERGY can not remove this charge. We are required by law to collect
the Energy Optimization charge.
Q Who
determines the chargeable rate? Top
A Ultimately the MPSC
approves all of the regulated charges. In this case, the legislation
was specific about what percentage of revenues SEMCO ENERGY is required
to collect from its customers. Those charges were spread across
all customer classes based on consumption.
Q Why
are SEMCO's rates different than MichCon and Consumers? Top
A Each utility is
required to develop its plan and spread the costs of that plan across
all customer classes. Different utilities have various customer
mixes that change the way in which costs are allocated.
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