Michigan Office of Administrative Hearings and Rules

611 W. Ottawa Street

Lansing, MI 48909

Phone: 517-335-8658 Fax: 517-335-9512

AGENCY REPORT TO THE

JOINT COMMITEE ON ADMNINISTRATIVE RULES (JCAR)

1. Agency Information

Agency name:

Licensing and Regulatory Affairs

Division/Bureau/Office:

Public Service Commission

Name of person completing this form:

Kelly Barber Dodge

Phone number of person completing this form:

517-284-8094

E-mail of person completing this form:

BarberDodgeK@Michigan.gov

Name of Department Regulatory Affairs Officer reviewing this form:

Elizabeth Arasim

2. Rule Set Information

MOAHR assigned rule set number:

2019-61 LR

Title of proposed rule set:

Technical Standards for Gas Service

3. Purpose for the proposed rules and background:

These rules apply to natural gas utility service provided by utilities that are subject to the jurisdiction

of the Public Service Commission. The rules are intended to promote safe and adequate gas service

to the public, to provide technical standards for uniform and reasonable practices by gas utilities, and

to encourage efficiency and safety. Changes to these rules are supported by the Commission and by

the regulated industry. The most significant issue these amendments will address is the out-of-date

technical standards referenced in the current rules. In addition, to accommodate evolving conditions

in the energy industry, a waiver provision has been added to the rules. The Commission is also

proposing to update the rule concerning statistical sampling of customer meters to provide utilities the

option to select among various standards for meter selection and testing. And, the Commission

proposes to establish a standard for the allowable concentration of oxygen in natural gas to address

concerns about corrosion and costly damage to gas storage facilities. Finally, the Commission is

proposing a security rule to address concerns about cybersecurity. This proposed rule is largely

identical to the cybersecurity rule that has been promulgated in the Technical Standards for Electric

Service.

MCL 24.242 and 24.245

Agency Report to JCAR-Page 2

4. Summary of proposed rules:

This is a proposal to adopt and amend rules governing technical standards for gas service. These

rules apply to gas utility service provided by utilities that are subject to the jurisdiction of the Public

Service Commission. The rules are intended to promote safe and adequate gas service to the public,

to provide standards for uniform and reasonable practices by utilities, and to encourage efficiency and

safety. The amendments to the rules reflect the emerging technological advancements in the area of

metering, metering equipment inspections, and tests. In addition, the Commission proposes removing

references to obsolete equipment from the existing rules. The Commission also proposes to add a

rule addressing cybersecurity and uniform reporting practices for the utilities.

5. List names of newspapers in which the notice of public hearing was published and

publication dates:

Oakland Press, October 30, 2019

The Grand Rapids Press, October 30, 2019

The Mining Journal, October 30, 2019

The Commission also extended the written comment deadline by issuing an order on December 19,

2019. The Commission’s order was presented at a public meeting and served on all those who

previously commented. In addition, the order was made available after the public Commission

meeting on December 19, 2019, in the Commission’s Edocket system and the Commission also noted

the extension in a December 19, 2019 press release.

6. Date of publication of rules and notice of public hearing in Michigan Register:

11/1/2019

7. Date, time, and location of public hearing:

11/13/2019 09:00 AM at Lake Michigan Hearing Room , 7109 W. Saginaw Hwy. Lansing, Michigan

8. Provide the link the agency used to post the regulatory impact statement and cost-benefit

analysis on its website:

https://dtmb.state.mi.us/ARS_Public/Transaction/RFRTransaction?TransactionID=72

9. List of the name and title of agency representative(s) attending public hearing:

Kelly Barber-Dodge, Michigan Public Service Commission

10. Persons submitting comments of support:

None

11. Persons submitting comments of opposition:

Aaron Adamczyk

Michigan Electric and Gas Association

Retail Energy Supply Association

Michigan Department of the Attorney General

DTE Gas Company

Citizens Utility Board of Michigan

MCL 24.242 and 24.245

Agency Report to JCAR-Page 3

12. Identify any changes made to the proposed rules based on comments received during the

public comment period:

Name &

Comments made at Written

Agency Rationale Rule number

Organization public hearing

Comments

for change

& citation

changed

R 460.2341

(2)(a)

1

Aaron

Adamczyk

Mr. Adamczyk

proposed

Many of the

standards

revisions to the

references to

standards

referenced in the

amended rules are

10 to 20 years old.

Given the

reflected in the

rules noting his existence of

changes in bolded updated standards,

blue text in the

proposed rule set references in the

including: R amended rules to

460.2341(2)(a): the most current

modifying the

“B109.1-2000

(R2008)” to

“B109.1-2019”

standard is

reasonable and

prudent as they

most appropriately

reflect current

technologies and

concerns.

2

Aaron

Adamczyk

Mr. Adamczyk

proposed

Many of the

standards

R 460.2341

(2)(c)

revisions to the

references to

standards

referenced in the

amended rules are

10 to 20 years old.

Given the

reflected in the

rules noting his existence of

changes in bolded updated standards,

blue text in the

proposed rule set references in the

including: R amended rules to

460.2341(2)(c): the most current

modifying the

“B109.3-2000

(R2008)” to

“B109.3-2019”

standard is

reasonable and

prudent as they

most appropriately

reflect current

technologies and

concerns.

MCL 24.242 and 24.245

Agency Report to JCAR-Page 4

3

Aaron

Adamczyk

Mr. Adamczyk

proposed

Many of the

standards

R 460.2344

(2)(b)(v)

revisions to the

references to

standards

referenced in the

amended rules are

10 to 20 years old.

Given the

reflected in the

rules noting his existence of

changes in bolded updated standards,

blue text in the modifying the

proposed rule set references in the

including: R

460.2344(2)(b)

amended rules to

the most current

(v): “(1992)” to standard is

“(2013)” and

“AGA Catalog

reasonable and

prudent as they

No XQ9210” to most appropriately

“AGA Catalog

No. XQ1304”

reflect current

technologies and

concerns.

4

Aaron

Adamczyk

Mr. Adamczyk

proposed

Many of the

standards

R 460.2344

(2)(b)(vii)

revisions to the

references to

standards

referenced in the

amended rules are

10 to 20 years old.

Given the

reflected in the

rules noting his existence of

changes in bolded updated standards,

blue text in the

modifying the

proposed rule set references in the

including: R

460.2344(2)(b)

(vii): “B109.1-

amended rules to

the most current

standard is

2000 (R2008)” to reasonable and

“B109.1-2019”

and “AGA

catalog No.

XQ0008” to

“AGA Catalog

No. X61902”

prudent as they

most appropriately

reflect current

technologies and

concerns.

MCL 24.242 and 24.245

Agency Report to JCAR-Page 5

5

Aaron

Adamczyk

Mr. Adamczyk

proposed

Many of the

standards

R 460.2344

(2)(b)(ix)

revisions to the

references to

standards

referenced in the

amended rules are

10 to 20 years old.

Given the

reflected in the

rules noting his existence of

changes in bolded updated standards,

blue text in the modifying the

proposed rule set references in the

including: R

460.2344(2)(b)

(ix): “ANSI

B109.3-2000

(R2008)” to

amended rules to

the most current

standard is

reasonable and

prudent as they

“ANSI B109.3- most appropriately

2019” and “AGA reflect current

Catalog No.

XQ0010” to

“AGA Catalog

No. XM1901”

Mr. Adamczyk

proposed

technologies and

concerns.

6

Aaron

Adamczyk

Many of the

standards

R 460.2344

(2)(d)(i)

revisions to the

references to

standards

referenced in the

amended rules are

10 to 20 years old.

Given the

reflected in the

rules noting his existence of

changes in bolded updated standards,

blue text in the

modifying the

proposed rule set references in the

including: R

460.2344(2)(d)

amended rules to

the most current

(i): “ANSI/ASQ standard is

Z1.9-2003

(R2013)” to

reasonable and

prudent as they

“ANSI/ASQ Z1.9 most appropriately

-2003 (R2018)” reflect current

technologies and

concerns.

MCL 24.242 and 24.245

Agency Report to JCAR-Page 6

7

Aaron

Adamczyk

Mr. Adamczyk

proposed

Many of the

standards

R 460.2344

(2)(d)(ii)

revisions to the

references to

standards

referenced in the

amended rules are

10 to 20 years old.

Given the

reflected in the

rules noting his existence of

changes in bolded updated standards,

blue text in the modifying the

proposed rule set references in the

including: R

460.2344(2)(d)

amended rules to

the most current

(ii): “ANSI/ASQ standard is

Z1.4-2003

(R2013)” to

reasonable and

prudent as they

“ANSI/ASQ Z1.4 most appropriately

-2003 (R2018)” reflect current

technologies and

concerns.

8

Aaron

Adamczyk

Mr. Adamczyk

proposed

Many of the

standards

R 460.2351a

(2)(a)

revisions to the

references to

standards

referenced in the

amended rules are

10 to 20 years old.

Given the

reflected in the

rules noting his existence of

changes in bolded updated standards,

blue text in the

proposed rule set references in the

including: R amended rules to

modifying the

460.2351a(2)(a): the most current

“ANSI B109.1- standard is

2000 (R2008)” to reasonable and

“ANSI B109.1- prudent as they

2019”

most appropriately

reflect current

technologies and

concerns.

MCL 24.242 and 24.245

Agency Report to JCAR-Page 7

9

Aaron

Adamczyk

Mr. Adamczyk

proposed

Many of the

standards

R 460.2351a

(2)(c)

revisions to the

references to

standards

referenced in the

amended rules are

10 to 20 years old.

Given the

reflected in the

rules noting his existence of

changes in bolded updated standards,

blue text in the modifying the

proposed rule set references in the

including: R amended rules to

460.2351a(2)(c): the most current

“ANSI/ASQ Z1.9 standard is

-2003 (R2013)” reasonable and

to “ANSI/AZQ

Z1.9-2003

(R2018)”

prudent as they

most appropriately

reflect current

technologies and

concerns.

10

Aaron

Adamczyk

Mr. Adamczyk

proposed

revisions to the

references to

standards

The Commission R 460.2351a

finds that it erred (2)(d)

in listing the

reaffirmed year in

Rule 51a(2)(d).

reflected in the

Mr. Adamczyk’s

rules noting his comment correctly

changes in bolded reflects the

blue text in the

proposed rule set reference and,

including: R therefore, Rule

appropriate

460.2351a(2)(d): 51a(2)(d) is

“ANSI/ASQ Z1.4 amended to state,

-2003 (R2013)” in pertinent part,

to “ANSI/ASQ

Z1.4-2003

“ANSI/ASQ Z1.4-

2003 (R2018).”

(R2018)”

MCL 24.242 and 24.245

Agency Report to JCAR-Page 8

11

Aaron

Adamczyk

Mr. Adamczyk

proposed

Many of the

standards

R 460.2354

(5)

revisions to the

references to

standards

referenced in the

amended rules are

10 to 20 years old.

Given the

reflected in the

rules noting his existence of

changes in bolded updated standards,

blue text in the modifying the

proposed rule set references in the

including: R

460.2354(5):

amended rules to

the most current

“ANSI B109.1- standard is

2000 (R 2008)” reasonable and

to “ANSI B109.1 prudent as they

-2019”

most appropriately

reflect current

technologies and

concerns.

12

Michigan

Electric and

Gas Association

MEGA notes that The Commission R 460.2381

they believe agrees that Rule (3)

subsection (3) of 81 needs revision.

R 460.2381

should read

The suggested

revision to Rule 81

“must not contain (3) is reasonable

more than 2% and prudent and

carbon dioxide or reflects the

5 parts per Commission’s

million oxygen.” intent.

DTE Gas The Commission R 460.2351

13

DTE Gas

Company

comments that, in agrees with the

(e)(i)

R 460.2351(e)(i) DTE Gas that Rule

“of” should be

51(e)(i) should be

modified to state revised and its

“less than”.

proposed revision

reflects the

Commission’s

intent.

MCL 24.242 and 24.245

Agency Report to JCAR-Page 9

14

Attorney

General

The Attorney

General

The Commission R 460.2363

agrees, in part.

comments that

Rule 63 provides

the rules would language

rescind

addressing refunds

to previous

ratepayers which

is not addressed in

the billing rules.

However, the

R460.2363 but

notes that the

billing rules do

not adequately

address in the

current rule such Commission

as refunds to

declines to retain

the entirety of

Rule 63(1) as it

references

Therefore, she

recommends that additional rules

Rule 63(1) not be being rescinded.

rescinded.

MCL 24.242 and 24.245

Agency Report to JCAR-Page 10

15

Retail Energy

Supply

Association

RESA comments The Commission R 460.2324

that the rules

governing the

technical

agrees that Rule

24 should be

modified. This

standards for gas rule set does not

service do not

apply to

apply to AGSs and

Rule 24, as

alternative gas

proposed, could be

suppliers (AGS) interpreted as

by definition.

applying to AGSs,

RESA notes that which is not

R 460.2324 (Rule appropriate. The

24), as drafted

could be

interpreted as

applying to an

AGS and

intent of Rule 24

was not to expand

the rules to AGSs.

Therefore, the

definition of the

therefore should term “gas

be modified. provider” should

be removed and

each use of the

term “gas

provider” should

be replaced with

the term “utility”

which is already

defined in

subsection (p) of R

460.2301.

13.Date report completed:

2/13/2020

MCL 24.242 and 24.245