From: Aaron Adamczyk <>  
Sent: Monday, August 5, 2019 3:18 AM  
To: MOAHR-Rules <MOAHR-Rules@michigan.gov>  
Subject: Draft rule comments  
Importance: High  
Please compare attached draft of 2018-072 LR to the current draft to see differences which are in bolded blue text.  
Please compare attached draft of 2019-061 LR to the current draft to see differences which are in bolded blue text.  
Thank you,  
Aaron Adamczyk  
DEPARTMENT OF LABOR AND ECONOMIC GROWTH LICENSING AND  
REGULATORY AFFAIRS  
PUBLIC SERVICE COMMISSION  
TECHNICAL STANDARDS FOR GAS SERVICE  
Filed with the secretary of state on  
This rule becomes effective immediately upon filing with the secretary of state unless  
adopted under sections 33, 44, or 45a(6) of the administrative procedures act of 1969, 1969  
PA 306, MCL 24.233, 24.244, or 24.245a. Rules adopted under these sections become  
effective 7 days after filing with the secretary of state.  
(By authority conferred on the public service commission by sections 4 and 6 of 1939 PA 3,  
Act No. 3 of the Public Acts of 1939MCL 460.4 and 460.6, as amended, and section 2 of  
Act No. 165 of the Public Acts of 1969 PA 165, being SS460.6 and 483.152 of the Michigan  
Compiled Laws)MCL 483.152, section 5 of 1919 PA 419, MCL 460.55, sections 3, 9, and  
231 of 1965 PA 380, MCL 16.103, 16.109, and 16.331, and section 12 of 1909 PA 300,  
MCL 462.2(12), and Executive Reorganization Order Nos. 1996-2, 2003-1, 2008-4, and  
2011-4, MCL 445.2001, 445.2011, 445.2025, and 445.2030.)  
R 460.2301, R 460.2302, R 460.2321, R 460.2323, R 460.2331, R 460.2332, R 460.2333, R  
460.2335, R 460.2341, R 460.2351, R 460.2353, R 460.2354, R 460.2355, R 460.2362, R  
460.2371, R 460.2373, R 460.2381, R 460.2382, and R 460.2383 of the Michigan  
Administrative Code are amended, R 460.2324, R 460.2344, R 460.2345, R 460.2351a, are  
added, and R 460.2342, R 460.2352, R 460.2361, R 460.2363, R 460.2364, and R 460.2374  
are rescinded, as follows:  
PART 1. GENERAL PROVISIONS  
R 460.2301 Definitions.  
Rule 1. As used in these rules:  
(a) “Acceptable to the commission” or “Approved by the commission” or “authorized by the  
commission” means that a commission order has been obtained issued.  
(b) “British thermal unit” means the quantity of heat that must be added to 1 avoirdupois  
pound of pure water to raise its temperature from 58.5 degrees Fahrenheit to 59.5 degrees  
Fahrenheit under standard pressure. Standard pressure is 30 inches mercury at 32 degrees  
Fahrenheit or 14.73 pounds per square inch absolute and with acceleration due to gravity  
equal to 32.174 feet per second per second.  
(c) “Commission” means the Michigan public service commission.  
(d) “Cubic foot of gas” means either of the following:  
(i) For billing purposes, a standard cubic foot of gas is that quantity of dry gas which, at a  
temperature of 60 degrees Fahrenheit and an absolute pressure of 14.65 pounds per square  
inch, occupies 1 cubic foot. The commission may, however, approve a different absolute  
pressure base.  
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(ii) For testing purposes, such as testing for heating value, a standard cubic foot of gas is that  
quantity of gas which, when saturated with water vapor at a temperature of 60 degrees  
Fahrenheit and an absolute pressure of 14.73 pounds per square inch, occupies 1 cubic foot.  
(e) “Customer” means an individual, firm, association, or corporation business, excluding  
other gas utilities, or any agency of the federal, state, county, or municipal government  
that purchases or otherwise receives gas or transportation services, or both, on the utility’s  
system.  
(f) “Hazardous condition” means any condition which the utility determines poses an  
immediate and serious threat to the health, safety, or welfare of a customer or the general  
public and which requires immediate action.  
(g) “Liquefied petroleum gas-air mixture” means a gas that is produced by mixing an  
appropriate quantity of air with propane vapor, butane vapor, or a mixture of such vapors.  
(h) “Meter” means, unless otherwise qualified, a device of owned by a utility that is used in  
measuring a quantity of gas.  
(ih) “Meter accuracy” means the volume that is measured by a meter as a percent of the  
actual volume that flowed through the meter as measured by a working standard.  
(i) “Meter error” means a failure to accurately measure and record all the natural gas  
used that is required by the applicable rate or rates.  
(j) “Mixed gas” means a gas that is produced by mixing natural gas with any of the  
following:  
(i) Air.  
(ii) Inert gas.  
(iii) Liquefied petroleum gas.  
(iv) Liquefied petroleum gas-air mixture.  
(v) Other flammable gas.  
(vi) Substitute natural gas.  
(k) “Premises” means an individual piece of land or real estate that is not separated by  
public roads, streets, or alleys, including buildings and other appurtenances thereon on that  
land or real estate.  
(l) “Potentially hazardous condition” means any condition which that the utility determines  
has the potential to become a hazardous condition, but which does not require immediate  
action. All the following are examples of potentially hazardous conditions, including, but  
not limited to, any of the following:  
(i) Customer failure to permit the utility to perform inspections and maintenance on the  
utility’s facilities in or on the customer’s premises.  
(ii) Customer alterations or modifications of the utility’s facilities located in or on the  
customer’s premises.  
(iii) Customer construction of a structure or appurtenance near or over the main, service line  
piping, or meter set assembly so that the utility’s facilities are not in compliance with the  
provisions of R 460.14001460.20101 to R 460.20606 of the Michigan gas safety standards  
et seq. of the Michigan Administrative Code or the utility’s standards.  
(iv) Customer failure to correct or replace gas utilization equipment or gas fuel line piping  
that has been previously identified and classified as potentially hazardous by the utility.  
(m) “Rate book” means the assembled rate schedules, rules, regulations, and standard forms  
of the utility as filed with the commission and available on the commission’s website.  
(n) “Required access” means access that is necessary to conduct any of the following:  
(i) Routine inspections and maintenance.  
(ii) Meter readings of gas usage.  
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(iii) Scheduled replacement, repairs, relocation, or disconnection of branch service lines or  
other changes with respect to service lines and meter assembly piping.  
(o) “Substitute natural gas” means gas which is interchangeable and compatible with natural  
gas and which is manufactured from carbon and hydrogen-bearing materials.  
(p) “Utility” means a person, firm, corporation, cooperative, association, or agency which  
that is subject to the jurisdiction of the commission and which delivers or distributes and  
sells gas to the public for heating, power, or other residential, commercial, or industrial  
purposes.  
R 460.2302 Application, intention, and interpretation of rules; utility rules and regulations.  
Rule 2. (1) These rules apply to a gas utility which that operates within the state of  
Michigan and which that is subject to the jurisdiction of the commission.  
(2) These 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, to  
encourage efficiency and economy, and to establish a basis for determining the  
reasonableness of such demands as may be made by the public upon gas utilities.  
(3) Questions that concern the application or interpretation of these rules and disagreements  
with respect to any service rules and regulations that are promulgated by a gas utility shall be  
referred to the commission for a ruling.  
(4) A utility shall adopt reasonable rules and regulations, subject to commission approval,  
governing its relations with customers. The rules and regulations shall must not be  
inconsistent with these rules and any other rules of the commission as may be promulgated  
from time to time. A utility’s rules and regulations shall must constitute an integral part of  
the utility’s rate book.  
(5) Upon written request of a customer, utility, or on its own motion, the commission  
may waive any requirements of these rules when it determines the waiver will further  
the effective and efficient administration of these rules and is in the public interest.  
PART 2. RECORDS, REPORTS, AND OTHER INFORMATION  
R 460.2321 Retention of records.  
Rule 21. All records that are required to be made or maintained pursuant to these rules shall  
must be preserved by the utility for a period specified in R 460.2501 et seq. of the Michigan  
Administrative Code to R 460.2582. If a time period is not specified in these rules or in R  
460.2501 et seq.to R 460.2582, all records shall must be preserved by the utility for, not less  
than at a minimum, 1 year after the records are completed.  
R 460.2323 Reports and records generally.  
Rule 23. (1) Volumetric data that is contained in any report which is filed with the  
commission shall must define the pressure, temperature, and water saturation upon which the  
data is based.  
(2) In addition to reports or records that are required to be filed with the commission under  
these rules, a utility shall provide the commission with a current list of the name, title,  
address, and telephone number, and email address of the person who should be contacted in  
connection with all of the following:  
(a) General management duties.  
(b) Customer complaints that relate to operations.  
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(c) Construction, maintenance, operations, and emergencies during office and nonoffice  
hours for each major operating headquarters.  
(d) Meter tests and repairs.  
R 460.2324 Security reporting.  
Rule 24. (1) To inform the commission regarding matters that may affect the security  
or safety of persons or property, whether public or private, a gas provider must do both  
of the following:  
(a) Provide a written or oral annual report, individually or jointly with other gas  
providers, to designated members of the commission staff regarding the gas provider’s  
cybersecurity program and related risk planning. This report on the threat assessment  
and preparedness strategy must contain all the following information:  
(i) An overview of the program describing the gas provider’s approach to cybersecurity  
awareness and protection.  
(ii) A description of cybersecurity awareness training efforts for the gas provider’s staff  
members, specialized cybersecurity training for cybersecurity personnel, and  
participation by the gas provider’s cybersecurity staff in emergency preparedness  
exercises in the previous calendar year.  
(iii) An organizational diagram of the gas provider’s cybersecurity organization,  
including positions and contact information for primary and secondary cybersecurity  
emergency contacts.  
(iv) A description of the gas provider’s communications plan regarding unauthorized  
actions that result in loss of service, financial harm, or breach of sensitive business or  
customer data, including the gas provider’s plan for notifying the commission and  
customers.  
(v) A redacted summary of any unauthorized actions that resulted in material loss of  
service, financial harm, or breach of sensitive business or customer data, including the  
parties that were notified of the unauthorized action and any remedial actions  
undertaken.  
(vi) A description of the risk assessment tools and methods used to evaluate, prioritize,  
and improve cybersecurity capabilities, including work completed under R 460.2345.  
(vii) General information about current emergency response plans regarding  
cybersecurity incidents, domestic preparedness strategies, threat assessments, and  
vulnerability assessments.  
(b) In addition to the information required under subdivision (a) of this sub-rule, an  
investor-owned public utility must include in its annual report to the Michigan public  
service commission an overview of major investments in cybersecurity during the  
previous calendar year and plans and rationale for major investments in cybersecurity  
anticipated for the next calendar year.  
(2) As soon as reasonably practicable and prior to any public notification, a gas  
provider must orally report the confirmation of a cybersecurity incident to a designated  
member of the commission staff and to the Michigan fusion center, unless prohibited by  
law or court order or instructed otherwise by official law enforcement personnel, if any  
of the following occurred:  
(a) A person intentionally interrupted the production, transmission, or distribution of  
natural gas.  
(b) A person extorted money or other things of value from the gas provider through a  
cybersecurity attack.  
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(c) A person caused a denial of service in excess of 12 hours.  
(d) A security breach, as defined by the identity theft protection act, 2004 PA 452, MCL  
445.63(r), prior to public and customer notification.  
(e) At the gas provider’s discretion, any other cybersecurity incident, attack, or threat  
which the gas provider deems notable, unusual, or significant.  
(3) For purposes of this rule, “gas provider” means either of the following:  
(a) Any person or entity that is regulated by the commission for the purpose of selling  
natural gas to retail customers in this state.  
(b) A cooperative gas utility in this state.  
(4) For purposes of sub-rule (2) of this rule, “person” means any individual, firm,  
corporation, educational institution, financial institution, governmental entity, or legal  
or other entity.  
(5) For purposes of sub-rule (2)(c) of this rule, “denial of service” means, for a gas  
provider, a successful attempt to prevent a legitimate user from accessing electronic  
information made accessible by the gas provider or by another party on the behalf of  
the gas provider.  
PART 3. SERVICE REQUIREMENTS  
R 460.2331 Sale of gas.  
Rule 31. (1) All gas that is sold by a utility shall must be on the basis of meter  
measurement, unless otherwise authorized approved by the commission.  
(2) The utility shall provide the characteristics terms and conditions of service available to  
prospective customers upon request.  
(3) If gas is supplied and metered to a customer at a nominal delivery pressure of 0.25  
pounds per square inch gauge, then, for billing purposes, both of the following provisions  
apply:  
(a) The gas volume that is registered by the meter is assumed to be measured at standard  
billing conditions as defined in R 460.2301(d)(i), regardless of the actual temperature of the  
gas or actual atmospheric pressure. However, aAll meters which are to operate at ambient  
outdoor conditions, and which are installed after the effective date of this sub-rule shall must  
be installed equipped with a temperature-compensating device.  
(b) If the billing pressure base is 14.65 pounds per square inch absolute, then the atmospheric  
pressure is assumed to be 14.4 pounds per square inch absolute. If the commission has  
approved a different billing pressure base, then the assumed atmospheric pressure is equal to  
the difference between such absolute billing pressure base and 0.25 pounds per square inch.  
(4) If gas is supplied to a customer through a low-pressure distribution system such that a  
service regulator is not used before metering, then, for billing purposes, the gas shall must be  
assumed to be supplied and metered at 0.25 pounds per square inch gauge. The low-pressure  
system shall must be operated so that the gauge pressure at the outlet of the meter shall must  
be maintained within a range of 3 inches water column minimum to a maximum of 14 inches  
water column. However, delivery to the customer may be as high as 18 inches water column  
if the pressure to the appliances gas utilization equipment is regulated to not more than 14  
inches water column. A utility may implement different standards for operating its low-  
pressure system if those standards are approved by the commission.  
(5) If gas is supplied and metered to a customer at a nominal delivery pressure of more than  
0.25 pounds per square inch gauge, then, for billing purposes, all the following provisions  
apply:  
6
(a) The gas volume that is measured by the meter shall must be corrected to standard billing  
conditions as defined in R 460.2301(d)(i).  
(b) Gas volume corrections for temperature shall must be made in accordance with under  
Charles’ law. Gas volume corrections for pressure shall must be made in accordance with  
under Boyle’s law. Gas volume corrections for supercompressibility shall must be made in  
accordance with under either of the following publications of the American gas association  
(AGA), both of which are adopted by reference in R 460.2344 these rules and may be  
purchased at the cost specified as of the time of adoption of these rules (which is subject to  
change) from the American Gas Association, 1515 Wilson Boulevard, Arlington, VA 22209,  
(703) 841-8558, or from the Michigan Public Service Commission, 6545 Mercantile Way,  
P.O. Box 30221, Lansing, MI 48909:  
(i) “Manual for the Determination of Supercompressibility Factors, for Natural Gas, Project  
NX-19”, PRCI Project NX-19” (1962) (A.G.A. Catalog No. L00340) ... $35.00. as adopted  
by reference in R 460.2344.  
(ii) “American Gas Association (AGA) Report No. 8, Part 1, “Thermodynamic  
Properties of Compressibility and Supercompressibility for Natural Gas and Other Related  
Hydrocarbon Gases, Transmission Measurement Committee Report No. 8”, (1992) (A.G.A.  
Catalog No. . . . . . .... $80.00 ($40.00 for AGA members) DETAIL and GROSS Equations  
of State”. (2017) AGA Catalog No. XQ1704-1 as adopted by reference in R 460.2344.  
(c) If the pressure at which the gas is metered is established on a gauge basis rather than an  
absolute basis, then the absolute pressure at which the gas is metered shall must be inferred  
by summing the gauge pressure and either the actual atmospheric pressure or a reasonable  
estimate thereof or an atmospheric pressure that is filed with, and approved by, the  
commission.  
(d) If a pressure-compensating device is used with the meter, the device shall must be  
calibrated using the actual atmospheric pressure or a reasonable estimate of that pressure.  
R 460.2332 Permanent sService line rules tariffs.  
Rule 32. Within 30 days after a company commences operating as a gas utility, the utility  
shall file its service line installation rules tariffs for commission approval. Such rules and  
regulations These tariffs shall must constitute an integral part of the utility’s rate book.  
R 460.2333 Main extension rules tariffs.  
Rule 33. Within 30 days after a company commences operating as a gas utility, the utility  
shall file its main extension rules tariffs for commission approval. Such rules and regulations  
These tariffs shall must constitute an integral part of the utility’s rate book.  
R 460.2335 Interruptions of service.  
Rule 35. (1) This rule does not apply to service interruptions that result from a utility’s  
implementation of the provisions of R 460.2101 et seq. of the Michigan Administrative Code  
or a utility’s shutoff of service due to nonpayment of bills, unauthorized use of gas  
service, or under the provisions of R 460.2371 to and R 460.23742373.  
(2) A utility shall make a reasonable effort to prevent interruptions of service and, when such  
interruptions occur, shall endeavor to reestablish service with the shortest possible delay  
consistent with the safety of its customers, its employees and others engaged in work for the  
utility, and the general public. If service is necessarily interrupted for the purpose of working  
on the distribution system or plant equipment, it shall must be done at a time that causes the  
7
least inconvenience to customers, and those customers who may be seriously affected shall  
be notified in advance.  
(3) If the supply of gas diminishes to the point where continuous service to customers is  
threatened, the utility may limit or shut off service to its customers pursuant to curtailment  
procedures approved by the commission.  
(4) A utility shall keep records of major interruptions of service reportable outages on its  
entire system or in major divisions or operating districts thereof of its system. The records  
shall must include a statement of the time, duration, and cause of the interruption. A utility  
shall report interruptions of service, as required by R 460.14001 et seq. of the Michigan  
Administrative Code460.20101 to R 460.2060 and shall periodically make an analysis of the  
records for the purpose of determining to determine steps to be taken to prevent the  
recurrence of such these interruptions.  
PART 4. ENGINEERING  
R 460.2341 Gas facilities; construction and installation.  
Rule 41. (1) Gas facilities of a utility shall be constructed and installed in accordance with  
under accepted engineering practices in the gas industry and R 460.20101 to R 460.20606  
to ensure, to the extent reasonably practicable, continuity of service, uniformity in the quality  
of service provided, and the safety of persons and property.  
(2) All new meters must conform to 1 of the following standards adopted by reference  
in R 460.2344:  
(a) American National Standards Institute (ANSI) B109.1-2019 for Diaphragm-Type  
Gas Displacement Meters (Under 500 Cubic Feet per Hour Capacity).  
(b) ANSI B109.2-2000 (R2008) for Diaphragm-Type Gas Displacement Meters (500  
Cubic Feet per Hour Capacity and Over).  
(c) ANSI B109.3-2019 for Rotary Type Gas Displacement Meters.  
(d) AGA Report No. 3, Orifice Metering of Natural Gas Part 2: Specifications and  
Installation Requirements.  
(e) AGA Report No. 7, Measurement of Gas by Turbine Meter.  
(f) AGA Report No. 9, Measurement of Gas by Multipath Ultrasonic Meters.  
(g) AGA Report No. 11, Measurement of Natural Gas by Coriolis Meter, Second  
Edition.  
R 460.2342 Standards of accepted engineering practice Rescinded.  
Rule 42. Unless otherwise specified by the commission, a utility shall use the publications  
listed below as standards of accepted practice:  
(a) The current edition of the Michigan gas safety code, R 460.14001 et seq. of the Michigan  
Administrative Code, which may be ordered from the Michigan Public Service Commission,  
6545 Mercantile Way, P.O. Box 30221, Lansing, MI 48909.  
(b) The following American national standards institute (ANSI) publications, which are  
adopted by reference in these rules and which may be purchased at the specified cost as of  
the time of adoption of these rules (which is subject to change) from the American National  
Standards Institute, 1430 Broadway, New York, New York 10018, (212) 642-4900, or from  
the American Gas Association (AGA), 1515 Wilson Boulevard, Arlington, VA 22209, (703)  
841-8558, or from the Michigan Public Service Commission, 6545 Mercantile Way, P.O.  
Box 30221, Lansing, MI 48909:  
8
(i) ANSI/API 2530, “Orifice Metering of Natural Gas and Other Related Hydrocarbon,  
A.G.A. Report No. 3”, as follows:  
(A) Part I, “General Equations and Uncertainty Guidelines,” (1990) (A.AG.A. Catalog No.  
XQ9017) $55.00 from ANSI or $50.00 from AGA ($40.00 for AGA members).  
(B) Part II, “Specification and Installation Requirements,” (1991) (A.G.A Catalog No.  
XQ9104) $55.00 from ANSI or $50.00 from AGA ($40.00 for AGA members)  
(C) Part III, “Natural Gas Applications”, (1992) (A.G.A. Catalog No. XQ9210) $65.00 from  
ANSI or $50.00 from AGA ($40.00 for AGA members)  
(D) Part IV, “Background Development, Implementation Procedures, and Sub Routine  
Documentation for Empirical Flange-Tapped Discharged Coefficient Equation”, (1992)  
(A.G.A. Catalog No. XQ9211) $50.00 from AGA ($40.00 for AGA members).  
(E) ANSI B109.1, “Diaphragm Type – Gas Displacement Meters, Under 500 Cubic Feet per  
Hour Capacity”, (1992) (A.G.A. Catalog No. X69218) $20.00 from ANSI or $20.00 from  
AGA ($10.00 for AGA members).  
(iii) ANSI B109.2, “Diaphragm Type – Gas Displacement Meters, 500 Cubic Feet per Hour  
Capacity and Over”, (1992) (A.G.A. Catalog No. X69219) $20.00 from ANSI or $20.00  
from AGA ($10.00 for AGA members).  
(iv) ANSI B109.3, “Gas Displacement Meters, Rotary Type”, (1992) (A.G.A. Catalog No.  
X69220) $20.00 from ANSI or $20.00 from AGA ($10.00 for AGA members).  
(v) ANSI Z223.1 National Fuel Gas Code – 1992 edition, which may also be purchased from  
the American Society of Mechanical Engineers, 345 East 47th Street, New York, NY 10017,  
(212) 705-7722, or from the National Fire Protection Association (NFPA), P.O. Box 9146,  
Quincy, MA 02269, (800) 344-3555 $24.50 ($22.00 for NPFA members).  
(c) The following national fire protection association standards, which are adopted by  
reference in these rules and which may be purchased at the specified cost as of the time of  
adoption by reference in these rules and which may be purchased at the specified cost as of  
the time of adoption of these rules (which is subject to change) from the National Fire  
Protection Association, P.O. Box 9146, Quincy, MA 02269, (800) 344-3555, or from the  
Michigan Public Service Commission, 6545 Mercantile Way, P.O. Box 30221, Lansing, MI  
48909:  
(i) “NFPA Standard 58, Storage and Handling of Liquefied Petroleum Gases”, (1992) $24.50  
($22.00 for NFPA members).  
R 460.2344 Adoption of standards by reference.  
Rule 44. (1) The publications and standards listed in this rule are adopted by  
reference and are a part of these rules. Publications identified as published by a  
specific organization are available from the organization at the address specified in this  
rule. All prices are current at the time of the adoption of these rules. The commission  
also has copies of the publications available for inspection and distribution at its offices  
located at 7109 W. Saginaw Highway, Lansing, Michigan 48917 at a cost of 10 cents per  
page unless otherwise specified in this rule.  
(2) The numbers in parentheses following the publications adopted by reference  
indicate the applicable editions.  
(a) The current edition of the Michigan gas safety standards, which is available online  
at www.michigan.gov/mpsc or may be ordered from the Michigan public service  
commission. $61.49.  
9
(b) The following publications of the American Gas Association (AGA), available from  
the American Gas Association, 400 North Capitol Street, NW, Suite 450, Washington,  
DC 20001, 202-824-7000, www.aga.org:  
(i) “Manual for the Determination of Supercompressibility Factors, PRCI Project NX-  
19”, (1970) AGA Catalog No. L00340. $149.00.  
(ii) AGA Report No. 8, Part 1, “Thermodynamic Properties of Natural Gas and Related  
Gases, DETAIL and GROSS Equations of State”. (2017) AGA Catalog No. XQ1704-1.  
$320.00.  
(iii) AGA Report No. 3, “Orifice Metering of Natural Gas Part 1: General Equations  
and Uncertainty Guidelines”. (2013, includes errata) AGA Catalog No. XQ1201.  
$168.00.  
(iv) AGA Report No. 3, Part 2, “Orifice Metering of Natural Gas and Other Related  
Hydrocarbon Fluids – Concentric, Square-edged Orifice Meters, Specifications and  
Installation Requirements”. (2017, includes errata) AGA Catalog No. XQ1601. $168.00.  
(v) AGA Report No. 3, “Orifice Metering of Natural Gas Part 3: Natural Gas  
Applications”. (2013) AGA Catalog No. XQ1304. $148.00.  
(vi) AGA Report No. 3, “Orifice Metering of Natural Gas Part 4: Background,  
Development, Implementation Procedures”. (1992) AGA Catalog No. XQ9211. $148.00.  
(vii) American National Standards Institute (ANSI) B109.1-2019, “Diaphragm-Type  
Gas Displacement Meters, Under 500 Cubic Feet per Hour Capacity”. AGA catalog No.  
X61902. $110.00.  
(viii) ANSI B109.2-2000 (R2008), “Diaphragm-Type Gas Displacement Meters, 500  
Cubic Feet per Hour Capacity and Over”. AGA Catalog No. XQ0009. $110.00.  
(ix) ANSI B109.3-2019, “Rotary Type Gas Displacement Meters”. AGA Catalog No.  
XM1901. $110.00.  
(x) AGA Report No. 7, “Measurement of Gas by Turbine Meter”. (2006) AGA Catalog  
No. XQ0601. $352.00.  
(xi) AGA Report No. 9, “Measurement of Gas by Multigraph Ultrasonic Meters”.  
(2017) AGA Catalog No. XQ1705. $400.00.  
(xii) AGA Report No. 11, “Measurement of Natural Gas by Coriolis Meter, Second  
Edition”. (2013) AGA Catalog No. XQ1301. $440.00.  
(xiii) National Fuel Gas Code. (2018) AGA Catalog No. Z223118. $60.00.  
(c) The following publications of the American Society for Testing and Materials  
(ASTM) International available from ASTM International, 100 Barr Harbor Drive, PO  
Box C700, West Conshohocken, PA, 19428, 610-832-9585, www.astm.org:  
(i) ASTM D1826-94, “Standard Test Method for Calorific (Heating) Value of Gases in  
Natural Gas Range by Continuous Recording Calorimeter”. (2017) ASTM Catalog No.  
D-1826. $46.00.  
(ii) ASTM D1945-14, “Standard Test Method for Analysis of Natural Gas by Gas  
Chromatography”. ASTM Catalog No. D-1945. $52.00.  
(iii) ASTM D3588-98, “Standard Practice for Calculating Heating Value,  
Compressibility Factor, and Relative Density of Gaseous Fuels”. (2017) ASTM Catalog  
No. D-3588. $46.00.  
(d) The following publications of the American Society for Quality (ASQ) available  
from American Society for Quality, PO Box 3005, Milwaukee, WI 53201, 800-248-1946,  
www.asq.org:  
(i) ANSI/ASQ Z1.9-2003 (R2018), “Sampling Procedures and Tables for Inspection by  
Variables for Percent Nonconforming”. $149.00.  
10  
(ii) ANSI/ASQ Z1.4-2003 (R2018), “Sampling Procedures and Tables for Inspection by  
Attributes”. $159.00.  
(e) American Petroleum Institute (API) Standard 1164 Ed. 2 (2009/R2016), “Pipeline  
SCADA Security”, available from API Publishing Services, 1220 L Street, NW,  
Washington DC 20005. $146.00.  
R 460.2345 Security standards.  
Rule 45. Unless otherwise approved by the commission, all utilities utilizing  
supervisory control and data acquisition systems shall implement API Standard 1164  
Ed. 2 (2009/R2016), as adopted by reference in R 460.2344.  
PART 5. INSPECTION OF METERS, METERING EQUIPMENT, INSPECTIONS,  
AND TESTS  
R 460.2351 Meters and associated metering devices; inspections; and tests; and records.  
Rule 51. Inspections and tests of meters and associated metering devices shall must be  
made by, or on behalf of, each utility as follows:  
(a) A meter or an associated metering device that is not included as a part of the meter, or  
both, shall must be inspected and tested before being placed in service, and the error shall  
must not be not more than 1.0%. In place of this requirement, methods of sample testing  
that are acceptable to the commission may be used.  
(b) A meter or an associated metering device, or both, shall must be tested after it is removed  
from service. Such These tests shall must be made before the meter or associated metering  
device is adjusted, repaired, or retired.  
(c) A repaired meter or a meter that is removed from service shall must be leak-tested before  
being returned to service, subject to the following requirements:  
(i) If tested in the field, a meter shall must be tested at the actual meter operating pressure of  
the system.  
(ii) If tested in the shop, a meter shall must be subjected to an internal pressure test of, at a  
minimum, not less than 3.0 pounds per square inch gauge pressure. and, in In addition, any  
meter that will operate above 3.0 pounds per square inch gauge pressure shall must be so  
marked on the meter and shall must be subjected to 1 of the following tests:  
(A) An internal pressure test of, at a minimum, not less than the manufacturer’s rated  
operating pressure.  
(B) An internal pressure test at 10% above the maximum operating pressure to which the  
meter could be subjected.  
(C) Any suitable test that is acceptable to approved by the commission.  
(iii) During the pressure test, the meter shall must be checked for leaks by 1 of the following  
tests:  
(A) Immersion test.  
(B) Soap test.  
(C) Pressure drop test of a type that is acceptable to approved by the commission.  
(d) As part of its rate book, a utility shall file, for commission approval, a statement of its  
policy regarding testing meter accuracy upon a customer’s request. In the absence of a filed  
policy approved by the commission, the utility shall adhere to both of the following  
provisions:  
(i) A utility shall test meter accuracy upon the request of a customer if the customer does not  
request a test more than once every 2 years and if the customer agrees to accept the results of  
11  
the test as the basis for determining the difference claimed. A charge shall must not be made  
to the customer for the first test in any 5-year period, but if subsequent tests during the same  
period, for the same customer, show the meter to be within the allowable limits of accuracy,  
the utility may charge the customer an amount for subsequent tests which is uniform and  
which does not exceed the utility’s direct cost thereof, plus a reasonable charge for  
administrative overhead. The customer may be present at the test if he or she makes a request  
before the test.  
(ii) A written report shall must be made to the customer by the utility. The report shall must  
state the results of the test. A record of the test shall must be kept by the utility.  
(e) A utility shall make periodic tests of meters, associated devices, and instruments to ensure  
their accuracy. The tests shall must be conducted according to the following schedule, unless  
otherwise authorized approved by the commission. A utility may test meters more  
frequently than provided in the following schedule without commission approval:  
(i) Positive displacement diaphragm-type meters that have capacities of 500 cubic feet per  
hour and under 10 years, not to exceed 123 months.  
(ii) Positive displacement diaphragm-type meters that have capacities over 500 cubic feet per  
hour 7 years, not to exceed 87 months.  
(iii) Rotary meters that have capacities of less than 15,000 cubic feet per hour, which  
may be tested in place, not to exceed 51 months.  
(iv) Rotary meters that have capacities of 15,000 cubic feet per hour or more, which  
may be tested in place, not to exceed 27 months.  
(v) Other meter types, such as proportional, rotary, and turbine, Coriolis, 4-Path or greater  
ultrasonic, or other metering technology, which may be tested in place when possible 2  
years, not to exceed 27 months.  
(ivi) Orifice meters 6 months, 2 times per year with intervals not to exceed 7.5 months.  
(vii) Gas instruments, such as base volume, base pressure, and base temperature-correcting  
devices, shall must be removed and checked for calibration at intervals that correspond to the  
schedule for their associated meters and shall be checked for calibration in place at intervals  
of not more than 2 years. The testing interval must not exceed 51 months.  
(viii) Test bottles, 1 cubic foot 10 years deadweight testers, certified test meters, not to  
exceed 123 months.  
(vii) Deadweight testers 10 years.  
(viii) Certified test meters 10 years.  
(ix) Meter testing systems shall must be calibrated when first installed and after alterations,  
damages, or repairs that might affect accuracy. To assure ensure that the accuracy of a meter  
testing system is maintained on a continuous basis, a daily leakage test shall must be made  
and a weekly accuracy test with a comparison meter of known accuracy shall must be made.  
If the test results differ by more than plus or minus 0.5% from the comparison meter, the  
cause of the error shall must be determined and necessary corrections shall must be made  
before the system is reused. The comparison meter shall must be checked at an interval of 1  
year not to exceed 13 months.  
(f) Utilities shall maintain records of meters that have been tested during the preceding  
calendar year and shall make this information available to the commission upon  
request. The record must contain all the following information for each meter tested:  
(i) Set year.  
(ii) Type of case.  
(iii) Manufacturer.  
(iv) Customer class, either commercial and industrial or residential.  
12  
(v) Results of the meter test.  
(vi) Whether the meter was retired and if so the reasons for the retirement.  
R 460.2351a Statistical quality sampling program for diaphragm-type meters.  
Rule 51a. (1) A utility shall comply with the provisions of R 460.2351, except that a  
utility that receives approval from the commission may adopt the requirements of this  
rule for statistical sampling and quality control of in-service diaphragm meters.  
Statistical sampling and quality control must be supervised by an individual trained in  
statistical sampling techniques.  
(2) A utility may use any of the following statistical quality control programs for meter  
testing, as adopted by reference in R 460.2344:  
(a) ANSI B109.1-2019, “Diaphragm-Type Gas Displacement Meters, Under 500 Cubic  
Feet per Hour Capacity”.  
(b) ANSI B109.2-2000 (R2008), “Diaphragm-Type Gas Displacement Meters, 500 Cubic  
Feet per Hour Capacity and Over”.  
(c) ANSI/ASQ Z1.9-2003 (R2018), “Sampling Procedures and Tables for Inspection by  
Variables for Percent Nonconforming”.  
(d) ANSI/ASQ Z1.4-2003 (R2018), “Sampling Procedures and Tables for Inspection by  
Attributes”.  
(3) A utility may use an alternative statistical quality sampling program if approved by  
the commission. An application to use an alternative program must include all the  
following information:  
(a) A description of the sampling program that must include all the following:  
(i) The type or types of meters subject to the sampling plan.  
(ii) The frequency of testing.  
(iii) The procedures to be used for the sampling.  
(iv) The meter test method to be used.  
(v) The accuracy of the testing and of the sampling plan.  
(b) An explanation of the reason or reasons for the requested sampling plan.  
(c) An analysis that demonstrates that, with respect to assuring the accuracy of the  
meters tested, the requested sampling program is at least as effective as the standards  
listed in sub-rule (2) of this rule.  
(4) Meters for quality control sampling must be separated into homogenous groups by  
year set and may be further separated by manufacturer, capacity rating, model, case  
type, diaphragm material, year manufactured, or other distinguishing characteristics.  
When 1 or more groups established are believed to be too small for practical quality  
control sampling, they may be combined with another group of similar operating  
characteristics to establish a larger sampling base. Combined groups must have sample  
size and acceptance-rejection numbers based on the combined total of meters. Samples  
must be drawn by a random method that ensures each meter in the group has an equal  
chance of being selected.  
(5) All meter groups, or combined meter groups, must be subject to acceptance or  
rejection on the basis of the statistical results unless it becomes obvious that the rejected  
meters are predominantly from 1 identifiable subgroup which may be shown by test  
data to have been affected by location, age, or other common factors. If this result  
should occur, the identifiable subgroup may be separated, and the remaining meters  
treated as a new combined group with appropriate sample size and acceptance-  
rejection numbers.  
13  
(6) A meter removed from a customer’s premises and tested as part of any business  
practice not related to the statistical quality control program must be included only in  
the program’s sample if the meter is randomly selected according to sub-rule (4) of this  
rule.  
(7) By March 1 of each year, utilities shall file a report of the meters that have been  
tested during the preceding calendar year. The report must include separate sections  
addressing results for meters tested as part of the statistical quality control program  
and meters tested as part of routine meter removals or exchanges. The report must  
detail both of the following:  
(a) All of the following meter characteristics:  
(i) Set year.  
(ii) Type of case.  
(iii) Manufacturer.  
(iv) Type of diaphragm.  
(v) Revenue classification, either commercial and industrial or residential.  
(b) The number of meters in each meter class tested and found within the norm and  
within each 1% variance from norm between 94% accuracy and 106% accuracy.  
Meters that are slower than 94% and faster than 106% must each be grouped  
separately. Meters that are determined to be non-registering shall be reported to either  
have been repaired, tested, and returned to the field, or retired.  
R 460.2352 Diaphragm-type meters; meter tests; reports. Rescinded.  
Rule 52. (1) A utility shall comply with the provisions of R 460.2351, except that a utility  
that receives approval from the commission may adopt the requirements of this rule.  
(2) This rule applies only to diaphragm-type meter categories that have a rated capacity as  
follows:  
(a) Category 1 - 500 cubic feet per hour or less.  
(b) Category 2 - 501 cubic feet per hour to 1000 cubic feet per hour.  
(c) Category 3 - 1001 cubic feet per hour or more.  
(3) As used in this rule:  
(a) “Meter class” means a group or groups of meters as assigned by the utility according to  
specified meter characteristics, such as TMS (type, make, size), set year, year of  
manufacture, or other similar characteristics.  
(b) “Norm” means the acceptable meter accuracy range between 98% and 102%.  
(c) “Test point,” for a meter, means the numerical equivalent of the accuracy variance from  
norm, with 1 test point equal to a 1% variance. For example, a meter that is between 104.1%  
and 105.0% or between 95.0% and 95.9% accurate on test would have 3 test points.  
(4) The overall annual test rate criteria shall be determined pursuant to all the following  
provisions:  
(a) Determine the average test points per meter for each meter class (PMC).  
(b) Multiply the total number of installed meters at year-end in each class by the respective  
PMC to determine the total test points for each meter class. The test points for each meter  
class shall be added to arrive at total overall test points (Pt) for all installed meters specified  
in sub-rule (2) of this rule.  
(c) Divide Pt by the total number of installed meters at year-end to determine the overall  
average test points per meter.  
14  
(d) Using the overall average test points per meter determined in subdivision (c) of this sub-  
rule, determine the required percentage of total overall test points to be corrected the  
following year based upon the following table:  
Percentage of total  
Overall average test overall test points per meter (Pt) to be corrected  
.060 or less 2  
.061 - .09 3  
.091 - .12 4  
.121 - .15 5  
.151 - .18 6  
.181 - .21 7  
.211 - .24 8  
.241 - .27 9  
.271 - .30 10  
.301 - .33 11  
.331 - .35 12  
.351 or more 15  
(e) Multiply Pt by the applicable percentage of the points to be corrected as specified in  
subdivision (d) of this sub-rule to determine the total minimum test points to be corrected for  
the following year.  
(f) The sum of PMC times the number of meters tested for each meter class for the following  
year shall meet or exceed the total minimum test points to be corrected as determined in  
subdivision (e) of this sub-rule. The mix of meters to be tested shall be at the utility’s  
discretion, if the requirements of sub-rules (5) and (6) of this rule are met.  
(g) With commission approval, a utility may modify the requirements set forth in  
subdivisions (b) to (f) of this sub-rule so as to make the required computations based not on  
the utility’s test data from the prior year, but on the utility's test data from a calendar year 1  
year earlier.  
(5) Except for the non-registering meters, all meters that are removed from customers’  
premises shall be tested and shall form the basis of determining the total minimum test points  
to be corrected for the following calendar year in accordance with the provisions of sub-rule  
(4) of this rule. If a utility has knowledge that a class of meters is not maintaining  
satisfactory accuracy and cannot be repaired to maintain satisfactory accuracy, the class of  
meters shall be removed from service and retired.  
(6) Not less than 2% of the total meters that are originally set in each set year and not less  
than 2% of the total meters in service in each meter class shall be tested annually, except that  
a meter need not be removed for testing within the first 4 years after it is set.  
(7) Not later than March 1 of each year, utilities shall file a report of the meters that have  
been tested during the preceding calendar year. The report shall detail all the following  
information:  
(a) All of the following meter characteristics:  
(i) Set year.  
(ii) Type of case.  
(iii) Manufacturer.  
(iv) Type of diaphragm.  
(v) Revenue classification, either commercial and industrial or residential.  
(b) The number of meters in each meter class tested and found within the norm and within  
each 1% variance from norm between 94% accuracy and 106% accuracy. Meters that are  
15  
slower than 94% and faster than 106% shall each be grouped separately. For a utility that has  
more than 500,000 customers, the commission may approve a further 1% variance for meters  
that are slower than 94% and faster than 106%.  
(c) A comparison of the total test meters that were tested in the preceding year with the  
standard required pursuant to the provisions of sub-rule (4) of this rule.  
(d) Information and data that are needed to compute the total minimum test points to be  
corrected for the subsequent year in accordance with the provisions of sub-rule (4)(a) to (e)  
of this rule.  
(e) The identity of the meter classes to be used for the subsequent year, including an  
explanation for any meter class changes.  
(f) A separate section on meters that were retired during the preceding year that details the  
information identified in subdivision (a) of this sub-rule and the reasons for the retirement of  
the meters.  
R 460.2353 Retirement of meters.  
Rule 53. (1) Meters shall must be retired from service whenever abnormal conditions  
affecting accuracy cannot be corrected for economic or other reasons. Examples of such  
conditions are basic defects due to manufacture, design, or excessive damage. Meters may  
also be retired due to obsolescence, unavailability of repair parts, or other reasons.  
(2) Notwithstanding the provisions of any other rule, meters that are found to be over  
registering must be repaired or replaced within 6 months of the discovery of the error  
unless a different period is approved by the commission.  
R 460.2354 Accuracy of metering equipment; tests; standards.  
Rule 54. (1) The A utility shall use the applicable provisions of the standards listed adopted  
by reference in R 460.234244 as criteria of accepted practice in testing meters.  
(2) Metering equipment shall must be tested by comparison with the standards that are  
adopted by referenced in R 460.234244.  
(3) A gas service meter that is repaired or removed from service for any cause shall must,  
before installation, be tested and adjusted to be correct within 1% fast or 1% slow.  
(4) Every diaphragm-type gas meter shall must be tested before installation and adjusted, if  
required, to a meter accuracy of 100% plus or minus 1% at a low flow rate and at a high flow  
rate so that the numerical difference between the meter accuracy at these 2 flow rates is not  
more than 1 percentage point. A low flow rate is a flow at 20% to 50% of the rated capacity  
of the meter. A high flow rate is a flow at 80% to 120% of the rated capacity of the meter.  
The average meter accuracy of a diaphragm-type meter shall must be defined as 1/2 the sum  
of the meter accuracy at the low flow test and at the high flow test.  
(5) All recording-type meters or associated instruments that have a timing element that serves  
to record the time at which the measurement occurs for billing purposes shall must be  
adjusted at intervals of not more than 2 years so that the timing element is not in error by  
more than plus or minus 4 minutes in 24 hours, under laboratory conditions, as set forth in  
ANSI B109.1-2019, “Diaphragm Type – Gas Displacement Meters, Under 500 Cubic  
Feet per Hour Capacity”, which is adopted by reference in R 460.2342(b)(ii)44, or by more  
than plus or minus 10 minutes in 24 hours under field conditions.  
R 460.2355 Meter shop; design; meter testing system; standards; handling; calibration cards;  
calibrated orifices.  
16  
Rule 55. (1) A utility shall maintain or designate a meter shop within Michigan for the  
purpose of inspecting, testing, and repairing meters. The shop shall must be open for  
inspection by authorized representatives of the commission at all reasonable times. A utility  
may secure authority obtain approval from the commission to have its meters tested outside  
of Michigan upon showing, to the satisfaction of the commission, that the meter test facilities  
so utilized are complying with these rules. Records of test results shall must be maintained  
in Michigan or the administrative headquarters of the utility.  
(2) The area within the meter shop that is used for the testing of meters shall must be  
designed so that the meters and meter-testing equipment are protected from drafts and  
excessive changes in temperature. The meters to be tested shall must be stored in such a  
manner that the temperature of the meters is substantially the same as the temperature of the  
prover.  
(3) A utility shall own and maintain, or have access to, a meter-testing system (working  
standard) of an approved type, subject to all the following provisions:  
(a) Means shall must be provided to maintain the temperature of the liquid in a meter-testing  
system at substantially the same level as the ambient temperature in the prover area.  
(b) The meter-testing system shall must be maintained in good condition and in correct  
adjustment so that it shall be can determine the accuracy of any service meter to plus or  
minus 0.5%.  
(c) A utility may use a properly calibrated test meter or transfer prover or may use a properly  
designed flow prover for testing meters.  
(4) Meter-testing systems (working standards) shall must be checked by comparison with a  
secondary standard. Both of the following provisions shall must be complied with:  
(a) At least once every 5 years, bell and flow provers shall must be checked with a 1-cubic  
foot bottle or shall must be calibrated by dimensional measurement or any other test that is  
approved by the commission. The accuracy of the secondary standard that is used shall must  
be traceable to the nNational iInstitute of sStandards and tTechnology.  
(b) At least once every 10 years, rotary displacement transfer provers shall must be checked  
with a standard that has its calibration traceable to the nNational iInstitute of sStandards and  
tTechnology or shall must be checked by any other suitable test that is approved by the  
commission.  
(5) Extreme care shall must be exercised in the use and handling of standards to assure  
ensure that their accuracy is maintained.  
(6) Each standard shall must have a certificate or calibration card which shall must be duly  
signed and dated and which shall must record the corrections that were required to  
compensate for errors found on the last test.  
(7) A utility shall have properly calibrated orifices to achieve the rates of flow required to  
test the meters on its system.  
PART 6. BILL ADJUSTMENT; METER ACCURACY  
R 460.2361 Bill adjustment; meter accuracy Rescinded.  
Rule 61. If a meter is found to be non-registering or to have an average meter accuracy less  
than 98% or greater than 102%, an adjustment of bills for the inaccuracy may be made in the  
case of nonregistration or under registration and shall be made in the case of over  
registration. The adjustment shall be calculated on the basis that the meter is 100% accurate  
with respect to the testing equipment that is used to make the test.  
17  
R 460.2362 Determination of adjustment.  
Rule 62. (1) If the date that the period of inaccurate meter registration began can be  
determined, that date shall must be the starting point for calculating an adjustment under the  
provisions of R 460.2361115.  
(2) If the date that the period of inaccurate meter registration began cannot be determined, it  
shall must be assumed that the inaccuracy existed for a period equal to 1/2 of the time  
elapsed since the meter was last installed on the present premises or tested.  
(3) The adjustment shall must be made on the basis of actual monthly consumption, if  
possible. Otherwise, the average monthly consumption that is determined from the most  
recent 36 months’ consumption data shall must be used.  
R 460.2363 Refunds Rescinded.  
Rule 63. (1) Refunds shall be made to the 2 most recent customers who received service  
through the meter found to be registering inaccurately. If the utility has not adopted the  
requirements of R 460.2352, the period that is used for determining the amount to be  
refunded shall not be more than 12 months. If the utility has adopted the requirements of R  
460.2352, the period that is used for determining the amount to be refunded shall be the  
period of inaccurate meter registration that is determined pursuant to the provisions of R  
460.2362(1) to (2). In the case of a previous customer who is no longer a customer of the  
utility, a notice of the amount of the refund shall be mailed to his or her last known address  
and the utility shall, upon demand made within 3 months, refund the amount.  
(2) If the amount of the refund due an existing or previous customer as the result of meter  
over registration is equal to, or more than, an average of 10 cents per month for the period  
that is used for determining the amount to be refunded, the full amount of the refund shall be  
made, except that a refund that is less than $1.00 need not be made to an existing customer  
and a refund that is less than $2.00 need not be made to a previous customer who is no longer  
a customer of the utility.  
R 460.2364 Rebilling Rescinded.  
Rule 64. If the amount due the utility as the result of meter nonregistration or under  
registration is equal to, or more than, amounts set forth in R 460.2363(2) as minimum  
refunds, the utility may bill the customer for the amount due, but the period covered by the  
billing shall not be more than 12 months unless otherwise ordered by the commission. The  
utility shall offer the customer reasonable payment arrangements for the billing, considering  
the period covered by the billing. A rebilling policy that is adopted by a utility based on  
minimum amounts that are more than those set forth in R 460.2363(2) shall be uniformly  
applied to all customers.  
PART 7. SHUTOFF OF SERVICE  
R 460.2371 Conditions for establishing gas service; liability; notice and record of inability to  
establish service; refusal of service to customer using other gaseous fuel; exception; service  
quality.  
Rule 71. (1) A utility shall not establish gas service to a customer’s premises until the utility  
has done both of the following: in compliance with the Michigan gas safety standards.  
(a) Performed a leakage test using gas at utilization pressure to ensure that the customer’s  
fuel line is gastight.  
(b) Decided that the gas odor is detectable.  
18  
(2) This test shall not be construed to make the The utility shall not be liable for the  
installation, maintenance, or use of piping or appliances gas utilization equipment that are  
is owned by the customer, nor shall the utility be held liable for any continuing duty of  
inspection of piping or appliances equipment.  
(3) If the condition of the customer’s fuel line is such that service cannot be established, the  
utility shall notify the customer, in writing, of the reason or reasons that service was not  
established.  
(4) A record shall must be kept by the utility of all cases where refusal to establish service is  
made. The record shall must provide all of the following information:  
(a) The name of the customer.  
(b) The address or location of the premises.  
(c) The date of the test.  
(d) The name of the service person.  
(e) All changes or rearrangements recommended.  
(5) Except in certain commercial and industrial applications that require a standby fuel that is  
authorized by the utility, the utility shall have the authority to refuse gas service to a  
customer that uses another gaseous fuel, such as liquefied petroleum gas, in the same  
building.  
(6) A utility shall have a meter reading factor of 85% or more for meters requiring  
billing reads within the meter reading period pursuant to the approved tariff, including  
customer reads.  
(7) If there is an existing main at a requesting address, a utility shall complete 90% or  
more of its new service installations within 15 business days of customer payment per  
tariff requirements and site readiness, or by a later date that is mutually agreed upon  
between the utility and customer.  
R 460.2373 Shutoff of service.  
Rule 73. Under any of the following conditions, gas service may be shut off by the utility:  
(a) A hazardous condition exists. In this instance, gas service may be shut off without prior  
notification.  
(b) A potentially hazardous condition exists. In this instance, gas service may be shut off  
upon implementing the customer notification procedures set forth in R 460.2071 et seq. and  
R 460.2101 et seq. of the Michigan Administrative Code and in the utility’s rate book after  
providing the customer with written notice of shutoff by first class mail at least 10 days  
before the shutoff is scheduled to occur.  
(c) Refusal of required access. In this instance, gas service may be shut off upon  
implementing the customer notification procedures set forth in R 460.2071 et seq. and R  
460.2101 et seq. of the Michigan Administrative Code and in the utility’s rate book after  
providing the customer with written notice of the shutoff by first class mail at least 10  
days before the shutoff is scheduled to occur.  
R 460.2374 Customer notification of shutoff of service Rescinded.  
Rule 74. A utility shall include, in its rate book, notification procedures to be utilized in  
dealing with potentially hazardous conditions and refusal of required access conditions.  
PART 8. GAS QUALITY  
R 460.2381 Gas purity.  
19  
Rule 81. (1) Gas that is distributed by a utility to a customer shall must not contain more  
than 0.3 grains of hydrogen sulfide or more than 20 grains of total sulfur per 100 cubic feet,  
including the sulfur in any hydrogen sulfide.  
(2) Gas that is distributed by a utility to a customer shall must not contain flammable liquids  
in quantities that interfere with the normal operation of the customer’s equipment.  
(3) Gas that is distributed by a utility to a customer must not contain more than 2%  
carbon dioxide and 5 parts per million oxygen.  
(4) Gas that is distributed by a utility to a customer must not contain water in excess of  
7 pounds per million cubic feet.  
R 460.2382 Heating value; authorized variations.  
Rule 82. (1) The heating value of substitute natural gas and mixed gas shall must be  
considered as being under the control of the utility. The average heating value on 1 day shall  
must not be more than or less than the standard total heating value range set forth in the  
utility’s rules. A utility shall not add air to a gas stream if this results in a heating value that is  
below 1,000 British thermal units per standard cubic foot.  
(2) The average monthly heating value of gas that is supplied by a utility shall be 1,025  
British thermal units per standard cubic foot, plus or minus 75 British thermal units. A  
greater variation may be authorized approved by the commission upon a showing by the  
utility that the variation will not adversely affect the efficient and satisfactory operation of its  
customers’ appliances gas utilization equipment.  
R 460.2383 Heating value records; location and accuracy of measuring equipment; frequency  
of heating value determination.  
Rule 83. (1) A utility shall maintain records of the heating value of the gas it distributes.  
Heating value test records shall must be preserved for not less than a minimum of 6 years. A  
utility shall utilize either the industry standards that are adopted by reference in R  
460.23424(d) or other standards that are approved by the commission for heating value  
determination methods.  
(2) Heating value measuring equipment shall must be installed in suitably located testing  
stations.  
(3) The accuracy of all heating value measuring equipment and the method of making  
heating value tests shall must meet the industry standards that are adopted by reference in R  
460.23424(d) or shall must otherwise be approved by the commission. Recording equipment  
shall must be tested not less than, at a minimum, annually.  
(4) The utility shall determine the heating value of substitute natural gas and mixed gas not  
less than at a minimum of twice a day and shall make the tests during the periods of the a.m.  
and p.m. peak demands.  
(5) The utility shall determine the heating value of gas at least once a month. A utility that  
sells gas subject to a thermal adjustment shall determine the heating value at least once a day.  
EXHIBIT B  
DEPARTMENT OF LABOR AND ECONOMIC GROWTH LICENSING AND  
REGULATORY AFFAIRS  
PUBLIC SERVICE COMMISSION  
TECHNICAL STANDARDS FOR GAS SERVICE  
Filed with the secretary of state on  
These rules become effective immediately upon filing with the secretary of state unless  
adopted under sections 33, 44, or 45a(6) of the administrative procedures act of 1969, 1969  
PA 306, MCL 24.233, 24.244, or 24.245a. Rules adopted under these sections become  
effective 7 days after filing with the secretary of state.  
(By authority conferred on the public service commission by sections 4 and 6 of 1939 PA 3,  
Act No. 3 of the Public Acts of 1939MCL 460.4 and 460.6, as amended, and section 2 of  
Act No. 165 of the Public Acts of 1969 PA 165, being SS460.6 and 483.152 of the Michigan  
Compiled Laws)MCL 483.152, section 5 of 1919 PA 419, MCL 460.55, sections 3, 9, and  
231 of the executive organization act of 1965, 1965 PA 380, MCL 16.103, 16.109, and  
16.331, and section 2(12) of 1909 PA 300, MCL 462.2(12), and Executive Reorganization  
Order Nos. 1996-2, 2003-1, 2008-4, and 2011-4, MCL 445.2001, 445.2011, 445.2025, and  
445.2030)  
R 460.2301, R 460.2302, R 460.2321, R 460.2323, R 460.2331, R 460.2332, R 460.2333,  
R 460.2335, R 460.2341, R 460.2351, R 460.2353, R 460.2354, R 460.2355, R 460.2362, R  
460.2371, R 460.2373, R 460.2381, R 460.2382, and R 460.2383 of the Michigan  
Administrative Code are amended, R 460.2324, R 460.2344, R 460.2345, and R 460.2351a  
are added, and R 460.2342, R 460.2352, R 460.2361, R 460.2363, R 460.2364, and R  
460.2374 are rescinded, as follows:  
PART 1. GENERAL PROVISIONS  
R 460.2301 Definitions.  
Rule 1. As used in these rules:  
(a) “Acceptable to the commission” or “Approved by the commission” or “authorized by  
the commission” means that a commission order has been obtainedissued.  
(b) “British thermal unit” means the quantity of heat that must be added to 1 avoirdupois  
pound of pure water to raise its temperature from 58.5 degrees Fahrenheit to 59.5 degrees  
Fahrenheit under standard pressure. Standard pressure is 30 inches mercury at 32 degrees  
Fahrenheit or 14.73 pounds per square inch absolute and with acceleration due to gravity  
equal to 32.174 feet per second per second.  
(c) “Commission” means the Michigan public service commission.  
(d) “Cubic foot of gas” means either of the following:  
(i) For billing purposes, a standard cubic foot of gas is that quantity of dry gas which, that,  
at a temperature of 60 degrees Fahrenheit and an absolute pressure of 14.65 pounds per  
August 14, 2019  
2
square inch, occupies 1 cubic foot. The commission may, however, approve a different  
absolute pressure base.  
(ii) For testing purposes, such as testing for heating value, a standard cubic foot of gas is  
that quantity of gas which, that, when saturated with water vapor at a temperature of 60  
degrees Fahrenheit and an absolute pressure of 14.73 pounds per square inch, occupies 1  
cubic foot.  
(e) “Customer” means an individual, firm, association, or corporationbusiness, excluding  
other gas utilities, or any agency of the federal, state, county, or municipal government  
that purchases or otherwise receives gas or transportation services, or both, on the utility’s  
system.  
(f) “Hazardous condition” means any condition which that the utility determines poses an  
immediate and serious threat to the health, safety, or welfare of a customer or the general  
public and which that requires immediate action.  
(g) “Liquefied petroleum gas-air mixture” means a gas that is produced by mixing  
an appropriate quantity of air with propane vapor, butane vapor, or a mixture of such  
vapors.  
(h) “Meter” means, unless otherwise qualified, a device ofowned by a utility that is used  
in measuring a quantity of gas.  
(ih) “Meter accuracy” means the volume that is measured by a meter as a percent of the  
actual volume that flowed through the meter as measured by a working standard.  
(i) “Meter error” means a failure to accurately measure and record all of the natural  
gas used that is required by the applicable rate or rates.  
(j) “Mixed gas” means a gas that is produced by mixing natural gas with any of the  
following:  
(i) Air.  
(ii) Inert gas.  
(iii) Liquefied petroleum gas.  
(iv) Liquefied petroleum gas-air mixture.  
(v) Other flammable gas.  
(vi) Substitute natural gas.  
(k) “Premises” means an individual piece of land or real estate that is not separated by  
public roads, streets, or alleys, including buildings and other appurtenances thereon on that  
land or real estate.  
(l) “Potentially hazardous condition” means any condition which that the utility determines  
has the potential to become a hazardous condition, but which that does not require  
immediate action. All of the following are examples of potentially hazardous conditions,  
including, but not limited to, any of the following:  
(i) Customer failure to permit the utility to perform inspections and maintenance on the  
utility’s facilities in or on the customer’s premises.  
(ii) Customer alterations or modifications of the utility’s facilities located in or on the  
customer’s premises.  
(iii) Customer construction of a structure or appurtenance near or over the main, service line  
piping, or meter set assembly so that the utility’s facilities are not in compliance with the  
provisions of R 460.14001460.20101 to R 460.20606 of the Michigan gas safety standards  
et seq. of the Michigan Administrative Code or the utility’s standards.  
3
(iv) Customer failure to correct or replace gas utilization equipment or gas fuel line piping  
that has been previously identified and classified as potentially hazardous by the utility.  
(m) “Rate book” means the assembled rate schedules, rules, regulations, and standard forms  
of the utility as filed with the commission and available on the commission’s website.  
(n) “Required access” means access that is necessary to conduct any of the following:  
(i) Routine inspections and maintenance.  
(ii) Meter readings of gas usage.  
(iii) Scheduled replacement, repairs, relocation, or disconnection of branch service lines or  
other changes with respect to service lines and meter assembly piping.  
(o) “Substitute natural gas” means gas which that is interchangeable and compatible with  
natural gas and which that is manufactured from carbon and hydrogen-bearing materials.  
(p) “Utility” means a person, firm, corporation, cooperative, association, or agency which  
that is subject to the jurisdiction of the commission and which that delivers or distributes  
and sells gas to the public for heating, power, or other residential, commercial, or industrial  
purposes.  
R 460.2302 Application, intention, and interpretation of rules; utility rules and regulations.  
Rule 2. (1) These rules apply to a gas utility whichthat operates within the state of  
Michigan and whichthat is subject to the jurisdiction of the commission.  
(2) These 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, to  
encourage efficiency and economy, and to establish a basis for determining the  
reasonableness of such demands as may be made by the public upon gas utilities.  
(3) Questions that concern the application or interpretation of these rules and disagreements  
with respect to any service rules and regulations that are promulgated by a gas utility shall be  
referred to the commission for a ruling.  
(4) A utility shall adopt reasonable rules and regulations, subject to commission approval,  
governing its relations with customers. The rules and regulations shallmust not be  
inconsistent with these rules and any other rules of the commission as may be promulgated  
from time to time. A utility’s rules and regulations shallmust constitute an integral part of  
the utility’s rate book.  
(5) Upon written request of a customer, utility, or on its own motion, the commission  
may waive any requirements of these rules when it determines the waiver will further  
the effective and efficient administration of these rules and is in the public interest.  
PART 2. RECORDS, REPORTS, AND OTHER INFORMATION  
R 460.2321 Retention of records.  
Rule 21. All records that are required to be made or maintained pursuant to these rules  
shallmust be preserved by the utility for a period of time specified in R 460.2501 et seq. of  
the Michigan Administrative Codeto R 460.2582. If a time period is not specified in these  
rules or in R 460.2501 et seq.to R 460.2582, all records shallmust be preserved by the utility  
for, not less thanat a minimum, 1 year after the records are completed.  
R 460.2323 Reports and records generally.  
4
Rule 23. (1) Volumetric data that is contained in any report which is filed with the  
commission shallmust define the pressure, temperature, and water saturation upon which the  
data is based.  
(2) In addition to reports or records that are required to be filed with the commission  
pursuant to these rules, a utility shall provide the commission with a current list of the name,  
title, address, and telephone number, and email address of the person who should be  
contacted in connection with all of the following:  
(a) General management duties.  
(b) Customer complaints that relate to operations.  
(c) Construction, maintenance, operations, and emergencies during office and nonoffice  
hours for each major operating headquarters.  
(d) Meter tests and repairs.  
R 460.2324 Security reporting.  
Rule 24. (1) To inform the commission regarding matters that may affect the security  
or safety of persons or property, whether public or private, a gas provider must do both  
of the following:  
(a) Provide a written or oral annual report, individually or jointly with other gas  
providers, to designated members of the commission staff regarding the gas provider’s  
cybersecurity program and related risk planning. This report on the threat assessment  
and preparedness strategy must contain all of the following information:  
(i) An overview of the program describing the gas provider’s approach to  
cybersecurity awareness and protection.  
(ii) A description of cybersecurity awareness training efforts for the gas provider’s  
staff members, specialized cybersecurity training for cybersecurity personnel, and  
participation by the gas provider’s cybersecurity staff in emergency preparedness  
exercises in the previous calendar year.  
(iii) An organizational diagram of the gas provider’s cybersecurity organization,  
including positions and contact information for primary and secondary cybersecurity  
emergency contacts.  
(iv) A description of the gas provider’s communications plan regarding unauthorized  
actions that result in loss of service, financial harm, or breach of sensitive business or  
customer data, including the gas provider’s plan for notifying the commission and  
customers.  
(v) A redacted summary of any unauthorized actions that resulted in material loss of  
service, financial harm, or breach of sensitive business or customer data, including the  
parties that were notified of the unauthorized action and any remedial actions  
undertaken.  
(vi) A description of the risk assessment tools and methods used to evaluate, prioritize,  
and improve cybersecurity capabilities, including work completed pursuant to R  
460.2345.  
(vii) General information about current emergency response plans regarding  
cybersecurity incidents, domestic preparedness strategies, threat assessments, and  
vulnerability assessments.  
(b) In addition to the information required under subdivision (a) of this subrule, an  
investor-owned public utility must include in its annual report to the Michigan public  
5
service commission an overview of major investments in cybersecurity during the  
previous calendar year and plans and rationale for major investments in cybersecurity  
anticipated for the next calendar year.  
(2) As soon as reasonably practicable and prior to any public notification, a gas  
provider must orally report the confirmation of a cybersecurity incident to a designated  
member of the commission staff and to the Michigan fusion center, unless prohibited by  
law or court order or instructed otherwise by official law enforcement personnel, if any  
of the following occurred:  
(a) A person intentionally interrupted the production, transmission, or distribution of  
natural gas.  
(b) A person extorted money or other things of value from the gas provider through a  
cybersecurity attack.  
(c) A person caused a denial of service in excess of 12 hours.  
(d) A security breach, as defined by section 3(b) of the identity theft protection act,  
2004 PA 452, MCL 445.63(b), prior to public and customer notification.  
(e) At the gas provider’s discretion, any other cybersecurity incident, attack, or threat  
that the gas provider deems notable, unusual, or significant.  
(3) As used in this rule, “gas provider” means either of the following:  
(a) Any person or entity that is regulated by the commission for the purpose of selling  
natural gas to retail customers in this state.  
(b) A cooperative gas utility in this state.  
(4) As used in subrule (2) of this rule, “person” means any individual, firm,  
corporation, educational institution, financial institution, governmental entity, or legal  
or other entity.  
(5) As used in subrule (2)(c) of this rule, “denial of service” means, for a gas provider,  
a successful attempt to prevent a legitimate user from accessing electronic information  
made accessible by the gas provider or by another party on the behalf of the gas  
provider.  
PART 3. SERVICE REQUIREMENTS  
R 460.2331 Sale of gas.  
Rule 31. (1) All gas that is sold by a utility shall must be on the basis of meter  
measurement, unless otherwise authorizedapproved by the commission.  
(2) The utility shall provide the characteristicsterms and conditions of service available to  
prospective customers upon request.  
(3) If gas is supplied and metered to a customer at a nominal delivery pressure of 0.25  
pounds per square inch gauge, then, for billing purposes, both of the following provisions  
apply:  
(a) The gas volume that is registered by the meter is assumed to be measured at standard  
billing conditions as defined in R 460.2301(d)(i), regardless of the actual temperature of the  
gas or actual atmospheric pressure. However, aAll meters whichthat are to operate at  
ambient outdoor conditions and which are installed after the effective date of this subrule  
shallmust be installedequipped with a temperature-compensating device.  
(b) If the billing pressure base is 14.65 pounds per square inch absolute, then the  
atmospheric pressure is assumed to be 14.4 pounds per square inch absolute. If the  
6
commission has approved a different billing pressure base, then the assumed atmospheric  
pressure is equal to the difference between such absolute billing pressure base and 0.25  
pounds per square inch.  
(4) If gas is supplied to a customer through a low-pressure distribution system such that a  
service regulator is not used before metering, then, for billing purposes, the gas shallmust be  
assumed to be supplied and metered at 0.25 pounds per square inch gauge. The low-pressure  
system shallmust be operated so that the gauge pressure at the outlet of the meter shallmust  
be maintained within a range of 3 inches water column minimum to a maximum of 14 inches  
water column. However, delivery to the customer may be as high as 18 inches water column  
if the pressure to the appliancesgas utilization equipment is regulated to not more than 14  
inches water column. A utility may implement different standards for operating its low-  
pressure system if those standards are approved by the commission.  
(5) If gas is supplied and metered to a customer at a nominal delivery pressure of more than  
0.25 pounds per square inch gauge, then, for billing purposes, all of the following provisions  
apply:  
(a) The gas volume that is measured by the meter shallmust be corrected to standard billing  
conditions as defined in R 460.2301(d)(i).  
(b) Gas volume corrections for temperature shallmust be made in accordance with  
pursuant to Charles’ law. Gas volume corrections for pressure shallmust be made in  
accordance with pursuant to Boyle’s law. Gas volume corrections for supercompressibility  
shallmust be made in accordance with pursuant to either of the following publications of  
the American gas association (AGA), both of which are adopted by reference in R 460.2344  
these rules and may be purchased at the cost specified as of the time of adoption of these  
rules (which is subject to change) from the American Gas Association, 1515 Wilson  
Boulevard, Arlington, VA 22209, (703) 841-8558, or from the Michigan Public Service  
Commission, 6545 Mercantile Way, P.O. Box 30221, Lansing, MI 48909:  
(i) “Manual for the Determination of Supercompressibility Factors, for Natural Gas, Project  
NX-19,” PRCI Project NX-19”(1962) (A.G.A. Catalog No. L00340). . $35.00. as adopted  
by reference in R 460.2344.  
(ii) “American Gas Association (AGA) Report No. 8, Part 1, “Thermodynamic  
Properties of Compressibility and Supercompressibility for Natural Gas and Other Related  
Hydrocarbon Gases, Transmission Measurement Committee Report No. 8,” (1992) (A.G.A.  
Catalog No. . . . . . .. .$80.00 ($40.00 for AGA members) DETAIL and GROSS Equations  
of State.” (2017) AGA Catalog No. XQ1704-1 as adopted by reference in R 460.2344.  
(c) If the pressure at which the gas is metered is established on a gauge basis rather than an  
absolute basis, then the absolute pressure at which the gas is metered shallmust be inferred  
by summing the gauge pressure and either the actual atmospheric pressure or a reasonable  
estimate thereof or an atmospheric pressure that is filed with, and approved by, the  
commission.  
(d) If a pressure-compensating device is used with the meter, the device shallmust be  
calibrated using the actual atmospheric pressure or a reasonable estimate thereof.  
R 460.2332 Permanent sService line rulestariffs.  
Rule 32. Within 30 days after a company commences operating as a gas utility, the utility  
shall file its service line installation rulestariffs for commission approval. Such rules and  
regulationsThese tariffs shallmust constitute an integral part of the utility’s rate book.  
7
R 460.2333 Main extension rulestariffs.  
Rule 33. Within 30 days after a company commences operating as a gas utility, the utility  
shall file its main extension rulestariffs for commission approval. Such rules and regulations  
These tariffs shallmust constitute an integral part of the utility’s rate book.  
R 460.2335 Interruptions of service.  
Rule 35. (1) This rule does not apply to service interruptions that result from a utility’s  
implementation of the provisions of R 460.2101 et seq. of the Michigan Administrative Code  
or a utility’s shutoff of service due to nonpayment of bills, unauthorized use of gas  
service, or pursuant to the provisions of R 460.2371 toand R 460.23742373.  
(2) A utility shall make a reasonable effort to prevent interruptions of service and, when  
such interruptions occur, shall endeavor to reestablish service with the shortest possible delay  
consistent with the safety of its customers, its employees and others engaged in work for the  
utility, and the general public. If service is necessarily interrupted for the purpose of working  
on the distribution system or plant equipment, it shallmust be done at a time that causes the  
least inconvenience to customers, and those customers who may be seriously affected shall  
be notified in advance.  
(3) If the supply of gas diminishes to the point where continuous service to customers is  
threatened, the utility may limit or shut off service to its customers pursuant to curtailment  
procedures approved by the commission.  
(4) A utility shall keep records of major interruptions of service reportable outages on its  
entire system or in major divisions or operating districts thereof of its system. The records  
shallmust include a statement of the time, duration, and cause of the interruption. A utility  
shall report interruptions of service, as required by R 460.14001 et seq. of the Michigan  
Administrative Code460.20101 to R 460.20606 and shall periodically make an analysis of  
the records for the purpose of determining to determine steps to be taken to prevent the  
recurrence of such these interruptions.  
PART 4. ENGINEERING  
R 460.2341 Gas facilities; construction and installation.  
Rule 41. (1) Gas facilities of a utility shall must be constructed and installed in accordance  
with pursuant to accepted engineering practices in the gas industry and R 460.20101 to R  
460.20606 to ensure, to the extent reasonably practicable, continuity of service, uniformity in  
the quality of service provided, and the safety of persons and property.  
(2) All new meters must conform to 1 of the following standards adopted by reference  
in R 460.2344:  
(a) American National Standards Institute (ANSI) B109.1-2000 (R2008) for  
Diaphragm-Type Gas Displacement Meters (Under 500 Cubic Feet per Hour Capacity).  
(b) ANSI B109.2-2000 (R2008) for Diaphragm-Type Gas Displacement Meters (500  
Cubic Feet per Hour Capacity and Over).  
(c) ANSI B109.3-2000 (R2008) for Rotary Type Gas Displacement Meters.  
(d) AGA Report No. 3, Orifice Metering of Natural Gas Part 2: Specifications and  
Installation Requirements.  
(e) AGA Report No. 7, Measurement of Gas by Turbine Meter.  
(f) AGA Report No. 9, Measurement of Gas by Multipath Ultrasonic Meters.  
8
(g) AGA Report No. 11, Measurement of Natural Gas by Coriolis Meter, Second  
Edition.  
R 460.2342 Standards of accepted engineering practice Rescinded.  
Rule 42. Unless otherwise specified by the commission, a utility shall use the publications  
listed below as standards of accepted practice:  
(a) The current edition of the Michigan gas safety code, R 460.14001 et seq. of the  
Michigan Administrative Code, which may be ordered from the Michigan Public Service  
Commission, 6545 Mercantile Way, P.O. Box 30221, Lansing, MI 48909.  
(b) The following American national standards institute (ANSI) publications, which are  
adopted by reference in these rules and which may be purchased at the specified cost as of  
the time of adoption of these rules (which is subject to change) from the American National  
Standards Institute, 1430 Broadway, New York, New York 10018, (212) 642-4900, or from  
the American Gas Association (AGA), 1515 Wilson Boulevard, Arlington, VA 22209, (703)  
841-8558, or from the Michigan Public Service Commission, 6545 Mercantile Way, P.O.  
Box 30221, Lansing, MI 48909:  
(i) ANSI/API 2530, “Orifice Metering of Natural Gas and Other Related Hydrocarbon,  
A.G.A. Report No. 3,” as follows:  
(A) Part I, “General Equations and Uncertainty Guidelines,” (1990)(A.AG.A. Catalog No.  
XQ9017) $55.00 from ANSI or $50.00 from AGA ($40.00 for AGA members).  
(B) Part II, “Specification and Installation Requirements,” (1991) (A.G.A Catalog No.  
XQ9104) $55.00 from ANSI or $50.00 from AGA ($40.00 for AGA members)  
(C) Part III, “Natural Gas Applications,” (1992) (A.G.A. Catalog No. XQ9210) $65.00 from  
ANSI or $50.00 from AGA ($40.00 for AGA members)  
(D) Part IV, “Background Development, Implementation Procedures, and Sub Routine  
Documentation for Emperical Flange-Tapped Discharged Coefficient Equation,” (1992)  
(A.G.A. Catalog No. XQ9211) $50.00 from AGA ($40.00 for AGA members).(ii) ANSI  
B109.1, “Diaphragm Type – Gas Displacement Meters, Under 500 Cubic Feet per Hour  
Capacity,” (1992) (A.G.A. Catalog No. X69218) $20.00 from ANSI or $20.00 from AGA  
($10.00 for AGA members).  
(iii) ANSI B109.2, “Diaphragm Type – Gas Displacement Meters, 500 Cubic Feet per Hour  
Capacity and Over,” (1992) (A.G.A. Catalog No. X69219) $20.00 from ANSI or $20.00  
from AGA ($10.00 for AGA members).  
(iv) ANSI B109.3, “Gas Displacement Meters, Rotary Type,” (1992) (A.G.A. Catalog No.  
X69220) $20.00 from ANSI or $20.00 from AGA ($10.00 for AGA members).  
(v) ANSI Z223.1 National Fuel Gas Code – 1992 edition, which may also be purchased  
from the American Society of Mechanical Engineers, 345 East 47th Street, New York, NY  
10017, (212) 705-7722, or from the National Fire Protection Association (NFPA), P.O. Box  
9146, Quincy, MA 02269, (800) 344-3555 $24.50 ($22.00 for NPFA members).  
(c) The following national fire protection association standards, which are adopted by  
reference in these rules and which may be purchased at the specified cost as of the time of  
adoption by reference in these rules and which may be purchased at the specified cost as of  
the time of adoption of these rules (which is subject to change) from the National Fire  
Protection Association, P.O. Box 9146, Quincy, MA 02269, (800) 344-3555, or from the  
Michigan Public Service Commission, 6545 Mercantile Way, P.O. Box 30221, Lansing, MI  
48909:  
9
(i) “NFPA Standard 58, Storage and Handling of Liquefied Petroleum Gases,” (1992)  
$24.50 ($22.00 for NFPA members).  
R 460.2344 Adoption of standards by reference.  
Rule 44. (1) The publications and standards listed in this rule are adopted by reference  
and are a part of these rules. Publications identified as published by a specific  
organization are available from the organization at the address specified in this rule.  
All prices are current at the time of the adoption of these rules. The commission also  
has copies of the publications available for inspection and distribution at its offices  
located at 7109 W. Saginaw Highway, Lansing, Michigan 48917 at a cost of 10 cents per  
page unless otherwise specified in this rule.  
(2) The numbers in parentheses following the publications adopted by reference  
indicate the applicable editions.  
(a) The current edition of the Michigan gas safety standards, which is available online  
at www.michigan.gov/mpsc or may be ordered from the Michigan public service  
commission. $61.49.  
(b) The following publications of the American Gas Association (AGA), available from  
the American Gas Association, 400 North Capitol Street, NW, Suite 450, Washington,  
DC 20001, 202-824-7000, www.aga.org:  
(i) “Manual for the Determination of Supercompressibility Factors, PRCI Project NX-  
19,” (1970) AGA Catalog No. L00340. $149.00.  
(ii) AGA Report No. 8, Part 1, “Thermodynamic Properties of Natural Gas and  
Related Gases, DETAIL and GROSS Equations of State.” (2017) AGA Catalog No.  
XQ1704-1. $320.00.  
(iii) AGA Report No. 3, “Orifice Metering of Natural Gas Part 1: General Equations  
and Uncertainty Guidelines.” (2013, includes errata) AGA Catalog No. XQ1201.  
$168.00.  
(iv) AGA Report No. 3, Part 2, “Orifice Metering of Natural Gas and Other Related  
Hydrocarbon Fluids – Concentric, Square-edged Orifice Meters, Specifications and  
Installation Requirements.” (2017, includes errata) AGA Catalog No. XQ1601. $168.00.  
(v) AGA Report No. 3, “Orifice Metering of Natural Gas Part 3: Natural Gas  
Applications.” (1992) AGA Catalog No. XQ9210. $148.00.  
(vi) AGA Report No. 3, “Orifice Metering of Natural Gas Part 4: Background,  
Development, Implementation Procedures.” (1992) AGA Catalog No. XQ9211. $148.00.  
(vii) American National Standards Institute (ANSI) B109.1-2000 (R2008),  
“Diaphragm-Type Gas Displacement Meters, Under 500 Cubic Feet per Hour  
Capacity.” AGA catalog No. XQ0008. $110.00.  
(viii) ANSI B109.2-2000 (R2008), “Diaphragm-Type Gas Displacement Meters, 500  
Cubic Feet per Hour Capacity and Over.” AGA Catalog No. XQ0009. $110.00.  
(ix) ANSI B109.3-2000 (R2008), “Rotary Type Gas Displacement Meters.” (2000) AGA  
Catalog No. XQ0010. $110.00.  
(x) AGA Report No. 7, “Measurement of Gas by Turbine Meter.” (2006) AGA Catalog  
No. XQ0601. $352.00.  
(xi) AGA Report No. 9, “Measurement of Gas by Multigraph Ultrasonic Meters.”  
(2017) AGA Catalog No. XQ1705. $400.00.  
10  
(xii) AGA Report No. 11, “Measurement of Natural Gas by Coriolis Meter, Second  
Edition.” (2013) AGA Catalog No. XQ1301. $440.00.  
(xiii) National Fuel Gas Code. (2018) AGA Catalog No. Z223118. $60.00.  
(c) The following publications of the American Society for Testing and Materials  
(ASTM) International available from ASTM International, 100 Barr Harbor Drive, PO  
Box C700, West Conshohocken, PA, 19428, 610-832-9585, www.astm.org:  
(i) ASTM D1826-94, “Standard Test Method for Calorific (Heating) Value of Gases in  
Natural Gas Range by Continuous Recording Calorimeter.” (2017) ASTM Catalog No.  
D-1826. $46.00.  
(ii) ASTM D1945-14, “Standard Test Method for Analysis of Natural Gas by Gas  
Chromatography.” ASTM Catalog No. D-1945. $52.00.  
(iii) ASTM D3588-98, “Standard Practice for Calculating Heating Value,  
Compressibility Factor, and Relative Density of Gaseous Fuels.” (2017) ASTM Catalog  
No. D-3588. $46.00.  
(d) The following publications of the American Society for Quality (ASQ) available  
from American Society for Quality, PO Box 3005, Milwaukee, WI 53201, 800-248-1946,  
www.asq.org:  
(i) ANSI/ASQ Z1.9-2003 (R2013), “Sampling Procedures and Tables for Inspection by  
Variables for Percent Nonconforming.” $149.00.  
(ii) ANSI/ASQ Z1.4-2003 (R2013), “Sampling Procedures and Tables for Inspection by  
Attributes.” $159.00.  
(e) American Petroleum Institute (API) Standard 1164 Ed. 2 (2009/R2016), “Pipeline  
SCADA Security,” available from API Publishing Services, 1220 L Street, NW,  
Washington DC 20005. $146.00.  
R 460.2345 Security standards.  
Rule 45. Unless otherwise approved by the commission, all utilities utilizing  
supervisory control and data acquisition systems shall implement API Standard 1164  
Ed. 2 (2009/R2016), as adopted by reference in R 460.2344.  
PART 5. INSPECTION OF METERS METERING EQUIPMENT INSPECTIONS AND  
TESTS  
R 460.2351 Meters and associated metering devices; inspections; and tests; and records.  
Rule 51. Inspections and tests of meters and associated metering devices shallmust be made  
by, or on behalf of, each utility as follows:  
(a) A meter or an associated metering device that is not included as a part of the meter, or  
both, shallmust be inspected and tested before being placed in service, and the error  
shallmust not be not more than 1.0%. In place of this requirement, methods of sample  
testing that are acceptable to the commission may be used.  
(b) A meter or an associated metering device, or both, shallmust be tested after it is  
removed from service. SuchThese tests shallmust be made before the meter or associated  
metering device is adjusted, repaired, or retired.  
(c) A repaired meter or a meter that is removed from service shallmust be leak-tested before  
being returned to service, subject to the following requirements:  
11  
(i) If tested in the field, a meter shallmust be tested at the actual meter operating pressure of  
the system.  
(ii) If tested in the shop, a meter shallmust be subjected to an internal pressure test of, at a  
minimum, not less than 3.0 pounds per square inch gauge pressure. and, in In addition, any  
meter that will operate above 3.0 pounds per square inch gauge pressure shallmust be so  
marked on the meter and shallmust be subjected to 1 of the following tests:  
(A) An internal pressure test of, at a minimum, not less than the manufacturer’s rated  
operating pressure.  
(B) An internal pressure test at 10% above the maximum operating pressure to which the  
meter could be subjected.  
(C) Any suitable test that is acceptable toapproved by the commission.  
(iii) During the pressure test, the meter shallmust be checked for leaks by 1 of the following  
tests:  
(A) Immersion test.  
(B) Soap test.  
(C) Pressure drop test of a type that is acceptable toapproved by the commission.  
(d) As part of its rate book, a utility shall file, for commission approval, a statement of its  
policy with regard to testing meter accuracy upon a customer’s request. In the absence of a  
filed policy approved by the commission, the utility shall adhere to both of the following  
provisions:  
(i) A utility shall test meter accuracy upon the request of a customer if the customer does  
not request a test more than once every 2 years and if the customer agrees to accept the  
results of the test as the basis for determining the difference claimed. A charge shall must  
not be made to the customer for the first test in any 5-year period, but if subsequent tests  
during the same period, for the same customer, show the meter to be within the allowable  
limits of accuracy, the utility may charge the customer an amount for subsequent tests which  
is uniform and which does not exceed the utility’s direct cost thereof, plus a reasonable  
charge for administrative overhead. The customer may be present at the test if he or she  
makes a request before the test.  
(ii) A written report shallmust be made to the customer by the utility. The report shallmust  
state the results of the test. A record of the test shallmust be kept by the utility.  
(e) A utility shall make periodic tests of meters, associated devices, and instruments to  
ensure their accuracy. The tests shallmust be conducted according to the following schedule,  
unless otherwise authorizedapproved by the commission. A utility may test meters more  
frequently than provided in the following schedule without commission approval:  
(i) Positive displacement diaphragm-type meters that have capacities of 500 cubic feet per  
hour and under 10 years, not to exceed 123 months.  
(ii) Positive displacement diaphragm-type meters that have capacities over 500 cubic feet  
per hour 7 years, not to exceed 87 months.  
(iii) Rotary meters that have capacities of less than 15,000 cubic feet per hour, which  
may be tested in place, not to exceed 51 months.  
(iv) Rotary meters that have capacities of 15,000 cubic feet per hour or more, which  
may be tested in place, not to exceed 27 months.  
(v) Other meter types, such as proportional, rotary, and turbine, Coriolis, 4-Path or greater  
ultrasonic, or other metering technology, which may be tested in place when possible 2  
years, not to exceed 27 months.  
12  
(ivi) Orifice meters 6 months, 2 times per year with intervals not to exceed 7.5 months.  
(vii) Gas instruments, such as base volume, base pressure, and base temperature-correcting  
devices, shallmust be removed and checked for calibration at intervals that correspond to the  
schedule for their associated meters and shall be checked for calibration in place at intervals  
of not more than 2 years. The testing interval must not exceed 51 months.  
(viii) Test bottles, 1 cubic foot 10 years deadweight testers, certified test meters, not to  
exceed 123 months.  
(vii) Deadweight testers 10 years.  
(viii) Certified test meters 10 years.  
(ix) Meter testing systems shallmust be calibrated when first installed and after alterations,  
damages, or repairs that might affect accuracy. To assure ensure that the accuracy of a meter  
testing system is maintained on a continuous basis, a daily leakage test shallmust be made  
and a weekly accuracy test with a comparison meter of known accuracy shallmust be made.  
If the test results differ by more than plus or minus 0.5% from the comparison meter, the  
cause of the error shallmust be determined and necessary corrections shallmust be made  
before the system is reused. The comparison meter shallmust be checked at an interval of 1  
year not to exceed 13 months.  
(f) Utilities shall maintain records of meters that have been tested during the  
preceding calendar year and shall make this information available to the commission  
upon request. The record must contain all of the following information for each meter  
tested:  
(i) Set year.  
(ii) Type of case.  
(iii) Manufacturer.  
(iv) Customer class, either commercial and industrial or residential.  
(v) Results of the meter test.  
(vi) Whether the meter was retired and if so the reasons for the retirement.  
R 460.2351a Statistical quality sampling program for diaphragm-type meters.  
Rule 51a. (1) A utility shall comply with the provisions of R 460.2351, except that a  
utility that receives approval from the commission may adopt the requirements of this  
rule for statistical sampling and quality control of in-service diaphragm meters.  
Statistical sampling and quality control must be supervised by an individual trained in  
statistical sampling techniques.  
(2) A utility may use any of the following statistical quality control programs for  
meter testing, as adopted by reference in R 460.2344:  
(a) ANSI B109.1-2000 (R2008), “Diaphragm-Type Gas Displacement Meters, Under  
500 Cubic Feet per Hour Capacity.”  
(b) ANSI B109.2-2000 (R2008), “Diaphragm-Type Gas Displacement Meters, 500  
Cubic Feet per Hour Capacity and Over.”  
(c) ANSI/ASQ Z1.9-2003 (R2013), “Sampling Procedures and Tables for Inspection  
by Variables for Percent Nonconforming.”  
(d) ANSI/ASQ Z1.4-2003 (R2013), “Sampling Procedures and Tables for Inspection  
by Attributes.”  
13  
(3) A utility may use an alternative statistical quality sampling program if approved  
by the commission. An application to use an alternative program must include all of  
the following information:  
(a) A description of the sampling program that must include all of the following:  
(i) The type or types of meters subject to the sampling plan.  
(ii) The frequency of testing.  
(iii) The procedures to be used for the sampling.  
(iv) The meter test method to be used.  
(v) The accuracy of the testing and of the sampling plan.  
(b) An explanation of the reason or reasons for the requested sampling plan.  
(c) An analysis that demonstrates that, with respect to assuring the accuracy of the  
meters tested, the requested sampling program is at least as effective as the standards  
listed in subrule (2) of this rule.  
(4) Meters for quality control sampling must be separated into homogenous groups by  
year set and may be further separated by manufacturer, capacity rating, model, case  
type, diaphragm material, year manufactured, or other distinguishing characteristics.  
When 1 or more groups established are believed to be too small for practical quality  
control sampling, they may be combined with another group of similar operating  
characteristics to establish a larger sampling base. Combined groups must have sample  
size and acceptance-rejection numbers based on the combined total of meters. Samples  
must be drawn by a random method that ensures each meter in the group has an equal  
chance of being selected.  
(5) All meter groups, or combined meter groups, must be subject to acceptance or  
rejection on the basis of the statistical results unless it becomes obvious that the rejected  
meters are predominantly from 1 identifiable subgroup which may be shown by test  
data to have been affected by location, age, or other common factors. If this result  
should occur, the identifiable subgroup may be separated and the remaining meters  
treated as a new combined group with appropriate sample size and acceptance-  
rejection numbers.  
(6) A meter removed from a customer’s premises and tested as part of any business  
practice not related to the statistical quality control program must be included only in  
the program’s sample if the meter is randomly selected according to subrule (4) of this  
rule.  
(7) Not later than March 1 of each year, utilities shall file a report of the meters that  
have been tested during the preceding calendar year. The report must include separate  
sections addressing results for meters tested as part of the statistical quality control  
program and meters tested as part of routine meter removals or exchanges. The report  
must detail both of the following:  
(a) All of the following meter characteristics:  
(i) Set year.  
(ii) Type of case.  
(iii) Manufacturer.  
(iv) Type of diaphragm.  
(v) Revenue classification, either commercial and industrial or residential.  
(b) The number of meters in each meter class tested and found within the norm and  
within each 1% variance from norm between 94% accuracy and 106% accuracy.  
14  
Meters that are slower than 94% and faster than 106% must each be grouped  
separately. Meters that are determined to be nonregistering must be reported to either  
have been repaired, tested, and returned to the field, or retired.  
R 460.2352 Diaphragm-type meters; meter tests; reports.Rescinded.  
Rule 52. (1) A utility shall comply with the provisions of R 460.2351, except that a utility  
that receives approval from the commission may adopt the requirements of this rule.  
(2) This rule applies only to diaphragm-type meter categories that have a rated capacity as  
follows:  
(a) Category 1 - 500 cubic feet per hour or less.  
(b) Category 2 - 501 cubic feet per hour to 1000 cubic feet per hour.  
(c) Category 3 - 1001 cubic feet per hour or more.  
(3) As used in this rule:  
(a) “Meter class” means a group or groups of meters as assigned by the utility according to  
specified meter characteristics, such as TMS (type, make, size), set year, year of  
manufacture, or other similar characteristics.  
(b) “Norm” means the acceptable meter accuracy range between 98% and 102%.  
(c) “Test point,” for a meter, means the numerical equivalent of the accuracy variance from  
norm, with 1 test point equal to a 1% variance. For example, a meter that is between 104.1%  
and 105.0% or between 95.0% and 95.9% accurate on test would have 3 test points.  
(4) The overall annual test rate criteria shall be determined pursuant to all of the following  
provisions:  
(a) Determine the average test points per meter for each meter class (Pmc).  
(b) Multiply the total number of installed meters at year-end in each class by the respective  
Pmc to determine the total test points for each meter class. The test points for each meter  
class shall be added to arrive at total overall test points (Pt) for all installed meters specified  
in subrule (2) of this rule.  
(c) Divide Pt by the total number of installed meters at year-end to determine the overall  
average test points per meter.  
(d) Using the overall average test points per meter determined in subdivision (c) of this  
subrule, determine the required percentage of total overall test points to be corrected the  
following year based upon the following table:  
Percentage of total  
Overall average test overall test points points per meter (Pt) to be corrected  
.060 or less 2  
.061 - .09 3  
.091 - .12 4  
.121 - .15 5  
.151 - .18 6  
.181 - .21 7  
.211 - .24 8  
.241 - .27 9  
.271 - .30 10  
.301 - .33 11  
.331 - .35 12  
.351 or more 15  
15  
(e) Multiply Pt by the applicable percentage of the points to be corrected as specified in  
subdivision (d) of this subrule to determine the total minimum test points to be corrected for  
the following year.  
(f) The sum of Pmc times the number of meters tested for each meter class for the following  
year shall meet or exceed the total minimum test points to be corrected as determined in  
subdivision (e) of this subrule. The mix of meters to be tested shall be at the utility’s  
discretion, if the requirements of subrules (5) and (6) of this rule are met.  
(g) With commission approval, a utility may modify the requirements set forth in  
subdivisions (b) to (f) of this subrule so as to make the required computations based not on  
the utility’s test data from the prior year, but on the utility's test data from a calendar year 1  
year earlier.  
(5) Except for the nonregistering meters, all meters that are removed from customers’  
premises shall be tested and shall form the basis of determining the total minimum test points  
to be corrected for the following calendar year in accordance with the provisions of subrule  
(4) of this rule. If a utility has knowledge that a particular class of meters is not maintaining  
satisfactory accuracy and cannot be repaired to maintain satisfactory accuracy, the class of  
meters shall be removed from service and retired.  
(6) Not less than 2% of the total meters that are originally set in each set year and not less  
than 2% of the total meters in service in each meter class shall be tested annually, except that  
a meter need not be removed for testing within the first 4 years after it is set.  
(7) Not later than March 1 of each year, utilities shall file a report of the meters that have  
been tested during the preceding calendar year. The report shall detail all of the following  
information:  
(a) All of the following meter characteristics:  
(i) Set year.  
(ii) Type of case.  
(iii) Manufacturer.  
(iv) Type of diaphragm.  
(v) Revenue classification, either commercial and industrial or residential.  
(b) The number of meters in each meter class tested and found within the norm and within  
each 1% variance from norm between 94% accuracy and 106% accuracy. Meters that are  
slower than 94% and faster than 106% shall each be grouped separately. For a utility that has  
more than 500,000 customers, the commission may approve a further 1% variance for meters  
that are slower than 94% and faster than 106%.  
(c) A comparison of the total test meters that were tested in the preceding year with the  
standard required pursuant to the provisions of subrule (4) of this rule.  
(d) Information and data that are needed to compute the total minimum test points to be  
corrected for the subsequent year in accordance with the provisions of subrule (4)(a) to (e) of  
this rule.  
(e) The identity of the meter classes to be used for the subsequent year, including an  
explanation for any meter class changes.  
(f) A separate section on meters that were retired during the preceding year that details the  
information identified in subdivision (a) of this subrule and the reasons for the retirement of  
the meters.  
R 460.2353 Retirement of meters.  
16  
Rule 53. (1) Meters shallmust be retired from service whenever abnormal conditions  
affecting accuracy cannot be corrected for economic or other reasons. Examples of such  
conditions are basic defects due to manufacture, design, or excessive damage. Meters may  
also be retired due to obsolescence, unavailability of repair parts, or other reasons.  
(2) Notwithstanding the provisions of any other rule, meters that are found to be  
overregistering must be repaired or replaced within 6 months of the discovery of the  
error unless a different period is approved by the commission.  
R 460.2354 Accuracy of metering equipment; tests; standards.  
Rule 54. (1) The A utility shall use the applicable provisions of the standards listedadopted  
by reference in R 460.234244 as criteria of accepted practice in testing meters.  
(2) Metering equipment shallmust be tested by comparison with the standards that are  
adopted by referenced in R 460.234244.  
(3) A gas service meter that is repaired or removed from service for any cause shallmust,  
before installation, be tested and adjusted to be correct within 1% fast or 1% slow.  
(4) Every diaphragm-type gas meter shallmust be tested before installation and adjusted, if  
required, to a meter accuracy of 100% plus or minus 1% at a low flow rate and at a high flow  
rate so that the numerical difference between the meter accuracy at these 2 flow rates is not  
more than 1 percentage point. A low flow rate is a flow at 20% to 50% of the rated capacity  
of the meter. A high flow rate is a flow at 80% to 120% of the rated capacity of the meter.  
The average meter accuracy of a diaphragm-type meter shallmust be defined as 1/2 the sum  
of the meter accuracy at the low flow test and at the high flow test.  
(5) All recording-type meters or associated instruments that have a timing element that  
serves to record the time at which the measurement occurs for billing purposes shallmust be  
adjusted at intervals of not more than 2 years so that the timing element is not in error by  
more than plus or minus 4 minutes in 24 hours, under laboratory conditions, as set forth in  
ANSI B109.1-2000 (R 2008), “Diaphragm Type – Gas Displacement Meters, Under 500  
Cubic Feet per Hour Capacity”, which is adopted by reference in R 460.2342(b)(ii)44, or  
by more than plus or minus 10 minutes in 24 hours under field conditions.  
R 460.2355 Meter shop; design; meter testing system; standards; handling; calibration cards;  
calibrated orifices.  
Rule 55. (1) A utility shall maintain or designate a meter shop within Michigan for the  
purpose of inspecting, testing, and repairing meters. The shop shallmust be open for  
inspection by authorized representatives of the commission at all reasonable times. A utility  
may secure authorityobtain approval from the commission to have its meters tested outside  
of Michigan upon showing, to the satisfaction of the commission, that the meter test facilities  
so utilized are in compliance with these rules. Records of test results shallmust be  
maintained in Michigan or the administrative headquarters of the utility.  
(2) The area within the meter shop that is used for the testing of meters shallmust be  
designed so that the meters and meter-testing equipment are protected from drafts and  
excessive changes in temperature. The meters to be tested shallmust be stored in such a  
manner that the temperature of the meters is substantially the same as the temperature of the  
prover.  
(3) A utility shall own and maintain, or have access to, a meter-testing system (working  
standard) of an approved type, subject to all of the following provisions:  
17  
(a) Means shallmust be provided to maintain the temperature of the liquid in a meter-testing  
system at substantially the same level as the ambient temperature in the prover area.  
(b) The meter-testing system shallmust be maintained in good condition and in correct  
adjustment so that it shall be is capable of determining the accuracy of any service meter to  
plus or minus 0.5%.  
(c) A utility may use a properly calibrated test meter or transfer prover or may use a  
properly designed flow prover for testing meters.  
(4) Meter-testing systems (working standards) shallmust be checked by comparison with a  
secondary standard. Both of the following provisions shallmust be complied with:  
(a) At least once every 5 years, bell and flow provers shallmust be checked with a 1-cubic  
foot bottle or shallmust be calibrated by dimensional measurement or any other test that is  
approved by the commission. The accuracy of the secondary standard that is used shallmust  
be traceable to the nNational iInstitute of sStandards and tTechnology.  
(b) At least once every 10 years, rotary displacement transfer provers shallmust be checked  
with a standard that has its calibration traceable to the nNational iInstitute of sStandards and  
tTechnology or shallmust be checked by any other suitable test that is approved by the  
commission.  
(5) Extreme care shallmust be exercised in the use and handling of standards to assure  
ensure that their accuracy is maintained.  
(6) Each standard shallmust have a certificate or calibration card which shallmust be duly  
signed and dated and which shallmust record the corrections that were required to  
compensate for errors found on the last test.  
(7) A utility shall have properly calibrated orifices to achieve the rates of flow required to  
test the meters on its system.  
PART 6. BILL ADJUSTMENT; METER ACCURACY  
R 460.2361 Bill adjustment; meter accuracyRescinded.  
Rule 61. If a meter is found to be nonregistering or to have an average meter accuracy less  
than 98% or greater than 102%, an adjustment of bills for the inaccuracy may be made in the  
case of nonregistration or underregistration and shall be made in the case of overregistration.  
The adjustment shall be calculated on the basis that the meter is 100% accurate with respect  
to the testing equipment that is used to make the test.  
R 460.2362 Determination of adjustment.  
Rule 62. (1) If the date that the period of inaccurate meter registration began can be  
determined, that date shallmust be the starting point for calculating an adjustment pursuant to  
the provisions of R 460.2361115.  
(2) If the date that the period of inaccurate meter registration began cannot be determined, it  
shallmust be assumed that the inaccuracy existed for a period equal to 1/2 of the time elapsed  
since the meter was last installed on the present premisesor tested.  
(3) The adjustment shallmust be made on the basis of actual monthly consumption, if  
possible. Otherwise, the average monthly consumption that is determined from the most  
recent 36 months’ consumption data shallmust be used.  
R 460.2363 RefundsRescinded.  
18  
Rule 63. (1) Refunds shall be made to the 2 most recent customers who received service  
through the meter found to be registering inaccurately. If the utility has not adopted the  
requirements of R 460.2352, the period that is used for determining the amount to be  
refunded shall not be more than 12 months. If the utility has adopted the requirements of R  
460.2352, the period that is used for determining the amount to be refunded shall be the  
period of inaccurate meter registration that is determined pursuant to the provisions of R  
460.2362(1) to (2). In the case of a previous customer who is no longer a customer of the  
utility, a notice of the amount of the refund shall be mailed to his or her last known address  
and the utility shall, upon demand made within 3 months, refund the amount.  
(2) If the amount of the refund due an existing or previous customer as the result of meter  
overregistration is equal to, or more than, an average of 10 cents per month for the period  
that is used for determining the amount to be refunded, the full amount of the refund shall be  
made, except that a refund that is less than $1.00 need not be made to an existing customer  
and a refund that is less than $2.00 need not be made to a previous customer who is no longer  
a customer of the utility.  
R 460.2364 RebillingRescinded.  
Rule 64. If the amount due the utility as the result of meter nonregistration or  
underregistration is equal to, or more than, amounts set forth in R 460.2363(2) as minimum  
refunds, the utility may bill the customer for the amount due, but the period covered by the  
billing shall not be more than 12 months unless otherwise ordered by the commission. The  
utility shall offer the customer reasonable payment arrangements for the amount of the  
billing, taking into account the period covered by the billing. A rebilling policy that is  
adopted by a utility based on minimum amounts that are more than those set forth in R  
460.2363(2) shall be uniformly applied to all customers.  
PART 7. SHUTOFF OF SERVICE  
R 460.2371 Conditions for establishing gas service; liability; notice and record of inability to  
establish service; refusal of service to customer using other gaseous fuel; exception; service  
quality.  
Rule 71. (1) A utility shall not establish gas service to a customer’s premises until the utility  
has done both of the following:in compliance with the Michigan gas safety standards.  
(a) Performed a leakage test using gas at utilization pressure to ensure that the customer’s  
fuel line is gastight.  
(b) Made a determination that the gas odor is detectable.  
(2) This test shall not be construed to make theThe utility shall not be liable for the  
installation, maintenance, or use of piping or appliancesgas utilization equipment that areis  
owned by the customer, nor shall the utility be held liable for any continuing duty of  
inspection of piping or appliancesequipment.  
(3) If the condition of the customer’s fuel line is such that service cannot be established, the  
utility shall notify the customer, in writing, of the reason or reasons that service was not  
established.  
(4) A record shallmust be kept by the utility of all cases where refusal to establish service is  
made. The record shallmust provide all of the following information:  
(a) The name of the customer.  
19  
(b) The address or location of the premises.  
(c) The date of the test.  
(d) The name of the service person.  
(e) All changes or rearrangements recommended.  
(5) Except in certain commercial and industrial applications that require a standby fuel that  
is authorized by the utility, the utility shall have the authority to refuse gas service to a  
customer that uses another gaseous fuel, such as liquefied petroleum gas, in the same  
building.  
(6) A utility shall have a meter reading factor of 85% or more for meters requiring  
billing reads within the meter reading period pursuant to the approved tariff, including  
customer reads.  
(7) If there is an existing main at a requesting address, a utility shall complete 90% or  
more of its new service installations within 15 business days of customer payment per  
tariff requirements and site readiness, or by a later date that is mutually agreed upon  
between the utility and customer.  
R 460.2373 Shutoff of service.  
Rule 73. Under any of the following conditions, gas service may be shut off by the utility:  
(a) A hazardous condition exists. In this instance, gas service may be shut off without prior  
notification.  
(b) A potentially hazardous condition exists. In this instance, gas service may be shut off  
upon implementing the customer notification procedures set forth in R 460.2071 et seq. and  
R 460.2101 et seq. of the Michigan Administrative Code and in the utility’s rate bookafter  
providing the customer with written notice of shutoff by first class mail at least 10 days  
before the shutoff is scheduled to occur.  
(c) Refusal of required access. In this instance, gas service may be shut off upon  
implementing the customer notification procedures set forth in R 460.2071 et seq. and R  
460.2101 et seq. of the Michigan Administrative Code and in the utility’s rate bookafter  
providing the customer with written notice of the shutoff by first class mail at least 10  
days before the shutoff is scheduled to occur.  
R 460.2374 Customer notification of shutoff of serviceRescinded.  
Rule 74. A utility shall include, in its rate book, notification procedures to be utilized in  
dealing with potentially hazardous conditions and refusal of required access conditions.  
PART 8. GAS QUALITY  
R 460.2381 Gas purity.  
Rule 81. (1) Gas that is distributed by a utility to a customer shallmust not contain more  
than 0.3 grains of hydrogen sulfide or more than 20 grains of total sulfur per 100 cubic feet,  
including the sulfur in any hydrogen sulfide.  
(2) Gas that is distributed by a utility to a customer shallmust not contain flammable liquids  
in quantities that interfere with the normal operation of the customer’s equipment.  
(3) Gas that is distributed by a utility to a customer must not contain more than 2%  
carbon dioxide and 5 parts per million oxygen.  
20  
(4) Gas that is distributed by a utility to a customer must not contain water in excess of  
7 pounds per million cubic feet.  
R 460.2382 Heating value; authorized variations.  
Rule 82. (1) The heating value of substitute natural gas and mixed gas shallmust be  
considered as being under the control of the utility. The average heating value on 1 day  
shallmust not be more than or less than the standard total heating value range set forth in the  
utility’s rules. A utility shall not add air to a gas stream if this results in a heating value that  
is below 1,000 British thermal units per standard cubic foot.  
(2) The average monthly heating value of gas that is supplied by a utility shall be 1,025  
British thermal units per standard cubic foot, plus or minus 75 British thermal units. A  
greater variation may be authorizedapproved by the commission upon a showing by the  
utility that the variation will not adversely affect the efficient and satisfactory operation of its  
customers’ appliancesgas utilization equipment.  
R 460.2383 Heating value records; location and accuracy of measuring equipment; frequency  
of heating value determination.  
Rule 83. (1) A utility shall maintain records of the heating value of the gas it distributes.  
Heating value test records shallmust be preserved for not less thana minimum of 6 years. A  
utility shall utilize either the industry standards that are adopted by reference in R  
460.23424(d) or other standards that are approved by the commission for heating value  
determination methods.  
(2) Heating value measuring equipment shallmust be installed in suitably located testing  
stations.  
(3) The accuracy of all heating value measuring equipment and the method of making  
heating value tests shallmust meet the industry standards that are adopted by reference in R  
460.23424(d) or shallmust otherwise be approved by the commission. Recording equipment  
shallmust be tested not less than, at a minimum, annually.  
(4) The utility shall determine the heating value of substitute natural gas and mixed gas not  
less thanat a minimum of twice a day and shall make the tests during the periods of the a.m.  
and p.m. peak demands.  
(5) The utility shall determine the heating value of gas at least once a month. A utility that  
sells gas subject to a thermal adjustment shall determine the heating value at least once a day.  
Douglas J. Austin  
Michael E. Cavanaugh  
Darrell A. Lindman  
Gary C. Rogers  
Thaddeus E. Morgan  
Brian P. Morley  
Jared A. Roberts  
David J. Houston  
Retired  
Donald A. Hines  
John J. Loose  
Jennifer Utter Heston  
Marlaine C. Teahan  
Mark E. Kellogg  
Melisa M. W. Mysliwiec  
Shaina R. Reed  
124 West Allegan Street, Suite 1000  
Lansing, Michigan 48933  
T (517) 482-5800 F (517) 482-0887  
www.fraserlawfirm.com  
Michael H. Perry  
Archie C. Fraser  
(1902–1998)  
Thomas J. Waters  
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Ryan K. Kauffman  
Paula J. Manderfield  
Paul V. McCord  
Everett R. Trebilcock  
(1918–2002)  
F
O
OUNSEL  
C
David E. S. Marvin  
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(1918–2005)  
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Paul C. Mallon, Jr.  
Peter L. Dunlap, P.C.  
jhestonfraserlawfirm.com  
(517) 377-0802  
December 4, 2019  
Ms. Lisa Felice, Executive Secretary  
Michigan Public Service Commission  
7109 W. Saginaw Hwy.  
Lansing, MI 48917  
RE: MPSC Docket No. U-20608  
Dear Ms. Felice:  
Attached herewith for filing in the above-referenced matter, please find the Comments of  
Retail Energy Supply Association.  
If you have any questions or concern with the attached, please do not hesitate to contact  
me.  
Very truly yours,  
Fraser Trebilcock Davis & Dunlap, P.C.  
Jennifer Utter Heston  
JUH/ab  
Attachment  
FR A SER TR EB ILC O C K D AV I S & D UN L AP | P C  
LANSING | DETROIT | GRAND RAPIDS  
STATE OF MICHIGAN  
BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION  
In the matter, on the Commission’s  
)
)
)
)
own motions, to amend the rules  
governing the technical standards for  
gas service.  
Case No. U-20608  
____________________________________)  
COMMENTS OF  
RETAIL ENERGY SUPPLY ASSOCIATION  
On October 17, 2019, the Commission issued an order in this proceeding requesting  
comments on new natural gas technical standards. The Retail Energy Supply Association  
(“RESA”)1, by and through its attorneys, Fraser, Trebilcock, Davis & Dunlap, P.C., appreciates  
the opportunity to comment on the Commission’s proposed rules and hereby submits the below  
comments.  
RESA consists of alternative gas suppliers (“AGSs”) who participate in both the Gas  
Customer Choice and End-Use Transportation programs offered in Michigan. RESA is a broad  
and diverse group of retail energy suppliers who share the common vision that competitive  
retail energy markets deliver a more efficient customer-oriented outcome than a regulated utility  
structure. RESA members are licensed to sell natural gas to retail customers in Michigan.  
Michigan’s Technical Standards for Gas Service, by their own terms, apply exclusively  
to gas utilities. Proposed Rule 2, R 460.2302, states, “These rules apply to a gas utility that  
1 The comments expressed in this filing represent the position of the Retail Energy Supply Association (RESA) as  
an organization but may not represent the views of any particular member of the Association. Founded in 1990,  
RESA is a broad and diverse group of retail energy suppliers dedicated to promoting efficient, sustainable and  
customer-oriented competitive retail energy markets. RESA members operate throughout the United States  
delivering value-added electricity and natural gas service at retail to residential, commercial and industrial energy  
customers. More information on RESA can be found at www.resausa.org.  
operates within the state of Michigan and that is subject to the jurisdiction of the Commission.”  
As proposed, a “utility” is defined as “a person, firm, corporation, cooperative, association, or  
agency that is subject to the jurisdiction of the commission and that delivers or distributes and  
sells gas to the public for heating, power, or other residential, commercial, or industrial  
purposes.” Thus, the Commission’s gas technical standards apply to jurisdictional gas  
distribution companies. AGSs are not gas distribution companies.  
Included, however, in the proposed rules is a new Rule 24, R 460.2324, related to cyber-  
security that, as drafted, would apply to a “gas provider.” A “gas provider” is defined as “[a]ny  
person or entity that is regulated by the commission for the purpose of selling natural gas to  
retail customers in this state” or “a cooperative gas utility in this state.” R 460.2324(3).  
Because AGSs are licensed by the Commission and sell natural gas to retail customers, the rule  
could be interpreted as applying to AGSs, even though the technical standards otherwise state  
that the standards only apply to gas utilities. RESA recommends that the new rule be revised  
to make clear that it applies only to gas utilities.  
Further, the proposed rule is unnecessary for AGSs to protect the public. Unlike  
distribution utilities, AGSs do not maintain or operate critical energy infrastructure.  
Unauthorized access to an AGS’s databases is highly unlikely to result in a loss of gas service  
or the safety of persons or property. The Commission should recognize that there are not the  
same cyber-security implications for AGSs and their customers as there are for distribution  
utilities.  
Importantly, AGSs are subject to Michigan’s Identify Theft Protection Act, Act 452 of  
2004, MCL 445.61 et seq. (“Act 452”). Under Act 452, AGSs are required to provide notice  
to affected customers of security breaches. Unlike utility customers, AGS customers are not  
2
captive. In a competitive environment, AGSs are incentivized to ensure that sensitive customer  
data is protected because failure to protect such data could lead to the loss of customers.  
Act 452 incents AGSs to protect sensitive customer data and requires disclosures where data  
breaches occur. Thus, there are existing adequate state regulations in place to protect AGS  
customers from cyber-security incidents.  
WHEREFORE, RESA hereby respectfully requests that this Commission make clear  
that proposed Rule 24, like all other proposed technical standards, apply only to gas utilities.  
Accordingly, Rule 24 should be revised to refer only to a “utility” rather than a “gas provider”  
and the special definition for “gas provider” should be removed. The proposed rule creates  
uncertainty as to its applicability and establishes additional unwarranted requirements on AGSs  
that will not increase customer protections.  
Respectfully submitted,  
FRASER TREBILCOCK DAVIS & DUNLAP, P.C.  
ATTORNEYS FOR RETAIL ENERGY SUPPLY ASSOCIATION  
Date: December 4, 2019  
By:  
Jennifer Utter Heston (P65202)  
Business Address:  
124 W. Allegan, Ste 1000  
Lansing, MI 48933  
Telephone: (517) 482-5800  
E-mail: jheston@fraserlawfirm.com  
3
`STATE OF MICHIGAN  
BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION  
* * * * *  
In the matter, on the Commission’s own  
motion, to amend the rules governing the  
technical standards for gas service.  
)
)
)
Case No. U-20608  
_______________________________________)  
Joint Utility Comments  
On October 17, 2019, the Michigan Public Service Commission (“Commission”) issued  
an Order and Notice of Hearing on revised rules for Technical Standards for Gas Service,  
establishing a public hearing on November 13, 2019 and the opportunity to submit written  
comments by December 4, 2019. Accordingly, a group of natural gas utilities1 (“Joint  
Commenters”) providing service to customers in Michigan jointly submit these comments to  
request clarification and raise concerns about certain provisions of the proposed revised rules.  
Joint Commenters appreciate the Commission’s efforts to keep standards current with changes in  
the industry.  
The first and most impactful issue is the adoption of the American Petroleum Institute  
(“API”) Standard 1164 (“API Standard”) as the applicable security standards in R 460.2345.  
The standard is a proprietary product of API and not generally available without registration and  
payment to API for copies. True public comments and due process is hampered by the fact that  
this standard is not publicly published and therefore may not be available to everyone.  
Furthermore, there are a number of requirements in API Standard 1164 that have not  
been subject to a complete review to understand the practical cost and operational impacts,  
including the impact on rates. There are other, more detailed concerns, like the lack of  
1 Joint Commenters include Consumers Energy, DTE Energy, and Michigan Gas Utilities.  
1
 
definitions for basic terms like SCADA, which is utilized numerous times in the API Standard.  
SCADA could or could not include remote field devices, meters, RTUs, etc. so clarity in what  
equipment is subject to the standards would be beneficial. Put concisely, the lack of availability  
and full understanding of what is required to implement the API Standard is, at this time, not  
clear enough to support wholesale adoption for the state of Michigan.  
In addition, Joint Commenters have identified several issues that are unclear and/or may  
require revision. The first is in section R 460.2381 Gas purity. In newly added subsection (3), it  
states in pertinent part, “…must not contain more than 2% carbon dioxide and 5 parts per million  
oxygen.” Joint Commenters believe the intent was that the rule read, “…must not contain more  
than 2% carbon dioxide or 5 parts per million oxygen.”  
Second, in section R 460.2351 on meters and associated metering devices; inspections;  
and tests; and records, subsection (e)(i) states, “[p]ositive displacement diaphragm-type meters  
that have capacities of 500 cubic feet per hour…” Joint Commenters understanding is that the  
section is intended to address meters with capacity of less than 500 cubic feet per hour and  
should therefore be revised to say, “[p]ositive displacement diaphragm-type meters that have  
capacities of under 500 cubic feet per hour…” Similarly, in section R 460.2351a on statistical  
quality sampling program for diaphragm-type meters, subsection (2)(d) refers to standard  
ANSI/ASQ Z1.4-2003 (R2013). That standard was updated in 2008 and should be revised to  
refer to ANSI/ASQ Z1.4-2008 (R2013). More discussion or comment may be necessary if the  
proposed corrections are not what the Commission intended.  
2
Joint Commenters appreciate the opportunity to provide comments on the rule revisions  
and respectfully urge the Commission to consider this feedback as the proposed revised rules  
continue to move through the rulemaking process.  
Sincerely,  
Tanya Paslawski  
President  
Michigan Electric and Gas Association  
On behalf of Joint Commenters  
3
STATE OF MICHIGAN  
DEPARTMENT OF ATTORNEY GENERAL  
P.O. BOX 30755  
LANSING, MICHIGAN 48909  
DANA NESSEL  
ATTORNEY GENERAL  
December 4, 2019  
Ms. Lisa Felice  
Executive Secretary  
Michigan Public Service Commission  
7109 West Saginaw Highway  
Lansing, MI 48917  
Dear Ms. Felice:  
Re: MPSC Case No. U-20608 – In the matter, on the Commission’s  
own motion, to issue amend the rules governing the technical standards for  
gas.  
On July 18, 2019, the Michigan Public Service Commission received approval  
from the Michigan Office of Administrative Hearings and Rules (MOAHR) to amend  
rules governing the technical standards for gas service (2019-061 LR). The  
Commission received informal approvals from the Legislative Service Bureau on  
August 9 and August 12, 2019 and MOAHR approved the Commission’s Regulatory  
Impact Statement on September 6. In an Order and Notice of Hearing dated  
October 17, 2019, the Commission provided the public with an opportunity to  
comment on the proposed rules at a public hearing held at 9:00 am on November 13,  
2019.  
The Commission’s order also provides an opportunity for any person to  
submit written comments regarding the proposed rules into the above referenced  
docket. In her role as ratepayer advocate for Michigan utility customers, the  
Attorney General is always concerned with the fair and equitable treatment of  
ratepayers and the ability of customers to afford utility service. After reviewing and  
analyzing the proposed amendments, the Attorney General is providing comments  
related to a few of the proposed amendments as well as recommendations on  
changes that should be made with regard to provisions regarding meter accuracy.  
R460.2362 Determination of Adjustment  
Subrule 62(2) provides that “if the date that the period of inaccurate meter  
registration began cannot be determined, it must be assumed that the inaccuracy  
existed for a period equal to ½ of the time elapsed since the meter was last installed  
or tested.” The amendment adds the possibility of testing as a triggering/bookend  
event for determining the possible period that a meter has been registering  
inaccurately. While this appears to shorten the time of possible inaccuracy for some  
meters, it still creates the potential for a long and arbitrary time period. Given the  
widespread use of newer AMI meters (and AMR modules on some existing meters)  
over a substantial area of the state, it seems that the meter history should be  
available and able reveal how a meter is registering overtime. Ratepayers have  
paid a substantial amount of money to have “smart” meters installed which the  
utilities have touted in large part based on their ability to gather and use  
information. Those utilities should be required to use that technology to lessen the  
burden and potential costs for customers due to meter inaccuracies.  
If a customer’s meter is truly unable to pinpoint the period of inaccurate  
meter registration, that period should be assumed to be no more than the period of  
time that refunds and rebillings may be paid to or recovered from ratepayers under  
the provisions governing refunds and rebillings. See the comments below regarding  
refunds and rebilling for the Attorney General’s proposed periods.  
R460.460.2353 – Retirement of meters.  
Subrule 53(2) provides that meters found to be overregistering must be  
repaired or replaced within 6 months of discovery. This is an unnecessarily long  
time to allow a meter that is known to be overcharging customers to continue to do  
so. Although the overcharge may eventually be addressed, allowing it to continue  
for up to 6 months is unreasonable. Once a meter is found to be inaccurate it should  
be repaired immediately, but under no circumstances should customers be  
overcharged for more than 3-months. Three months is more than sufficient time to  
repair or replace an inaccurate meter. On the other hand, there does not appear to  
be a similar deadline for repairing or replacing meters that are known to be  
underregistering. There should be a similar three-month limitation to prevent the  
possibility of large back-billing.  
R460.2363 Refunds and R460.2364 Rebilling  
These two rules are being rescinded and R460.2362 refers you to R460.115.  
So, the remainder of the Attorney General’s comments will refer to that rule which  
addresses meter accuracy and errors under the Consumer Standards and Billing  
Practices for Electric and Natural Gas Services. Subrule 15(4) provides that back  
billing of customers or refunds to customers for meter errors is limited to the 12-  
month period immediately preceding discovery of the error.  
First, Customers should not be back-billed for meter errors that result in  
underbilling except in limited situations. The Companies owns the meters. It has  
received funding from customers to install and maintain meters. It is patently  
unfair to allow the meters to operate unchecked – resulting in large balances and  
then seek to recover those amounts from ratepayers when the Companies are in the  
best position to know that the meters may be malfunctioning, especially with the  
deployment of AMI meters and AMR modules. In fact, customers are prohibited  
from interfering with the operation of gas meters which presumably includes having  
their own testing performed. Therefore, back-billing should only be allowed if the  
Company can demonstrate that a customer caused the error by damaging the  
meter, tampering with a meter or have accessed a meter without authorization.  
If the Commission decides against having the Company absorb the total cost  
of their underregistering meters, any back-billing should be limited in the  
alternative to 3-months or the last time the meter was installed or tested,  
whichever is shortest.  
Second, adjustments leading to refunds to customers should remain at 12-  
months since as noted above, the Company has a better ability to monitor meter  
performance and resolve problems.  
Third, customers should be able to request testing of their gas meters once a  
year free of charge. This will give ratepayers the ability to be proactive in  
protecting themselves from the negative consequences of meter inaccuracies. (See  
e.g., R 460.2351(d)(i)).  
The Attorney General thanks the Commission for an opportunity to comment  
on the proposed amended rules.  
Sincerely,  
Celeste R. Gill (P-52484)  
Assistant Attorney General  
Michigan Department of Attorney  
General, Special Litigation Division  
Ph: 517-335-7627  
Email: gillc1@michigan.gov  
From:  
Larisa Jennings  
To:  
LARA-MPSC-EDOCKETS  
Cc:  
Subject:  
Date:  
Rajan M Telang; Frenae F Smith  
DTE Gas U-20608 Final Comments  
Wednesday, December 4, 2019 3:50:59 PM  
DTE Gas U20608_FINAL Comments_2019-12-03.docx  
Attachments:  
Good afternoon, attached are DTE Gas’s proposed comments for revisions to the MPSC proposed  
updates to the rules governing gas technical standards. Please feel free to contact me with any  
additional questions or concerns.  
Larisa Jennings  
Senior Strategist  
Regulatory Affairs  
DTE Energy  
1160 WCB  
313-235-1652  
Larisa.jennings@dteenergy.com  
Frenae Smith  
Manager, Codes & Standards  
DTE Gas Company  
17150 Allen Road  
Melvindale, Michigan 48122  
December 4, 2019  
Executive Secretary  
Michigan Public Service Commission  
PO Box 30221  
Lansing, MI 48909  
RE: Case U-20608: Technical Standards for Gas Service  
Dear Madam or Sir:  
DTE Gas Company (DTE Gas) is an intrastate natural gas transmission and  
distribution pipeline operator and an operating subsidiary of DTE Energy, a  
Detroit-based diversified energy company involved in the development and  
management of energy-related businesses and services nationwide. DTE  
Gas serves approximately 1.3 million customers in Michigan and is pleased  
to have the opportunity to submit the following comments relating to the  
Notice of Proposed Rule Revisions issued by the Commission on August 2019.  
DTE Gas submits the following comments relating to the revisions  
presented in Case U-20608:  
The first comment is in section R 460.2351 on meters and associated  
metering devices; inspections; and tests; and records, subsection (e)(i)  
states, “[p]ositive displacement diaphragm-type meters that have capacities  
of 500 cubic feet per hour…” DTE Gas understanding is that the section is  
intended to address meters with capacity of less than 500 cubic feet per hour  
and should therefore be revised as bolded to say, “[p]ositive displacement  
diaphragm-type meters that have capacities of less than 500 cubic feet per  
hour…”  
The second comment is in section R 460.2371 Conditions for establishing gas  
service; liability; notice and record of inability to establish service; refusal of  
service to customer using other gaseous fuel; exception; service quality. In  
the newly added subsection (6) and (7) states, “A utility shall have a meter  
reading factor of 85% or more for meters requiring billing reads within the  
meter reading period pursuant to the approved tariff, including customer  
reads. If there is an existing main at a requesting address, a utility shall  
complete 90% or more of its new service installations within 15 business  
DTE Gas Comments  
U-20608  
Page 2 of 3  
days of customer payment per tariff requirements and site readiness, or by  
a later date that is mutually agreed upon between the utility and customer.”  
DTE Gas proposes the following additions or changes to Rule R460.2371:  
1. Outline items 6 and 7 as a separate rule, following the “Service Quality  
and Reliability Standards for Electric Distribution Systems” as stated  
in R 460.724.  
2. Include a definition as bolded for “meter reading factor” in R  
460.2301 Definitions similar to that as stated in the “Service Quality  
and Reliability Standards for Electric Distribution Systems” as stated  
in R 460.702, to state: “meter reading factor” means the  
percentage of meters read within an approved billing period.  
3. Include a definition for “approved billing period” in R 460.2301 as  
bolded to state, “approved billing period” means a billing  
month of not less than 26 days, nor more than 35 days, or  
some other time period approved by the commission.  
4. Include a definition as bolded for “site readiness” in R 460.2301 to  
state: ““site readiness”” means the first business day after all  
of the following events have occurred:  
(i) All rights of way, easements, licenses, and consents  
have been obtained and are and remain physically  
unencumbered.  
(ii) All permits have been received.  
(iii) All joint use requirements have been met.  
(iv) All required inspections have been completed.  
(v) All commission-approved tariff payments have been  
received.  
(vi) All MISS DIG activities have been completed.”  
5. In addition, DTE Gas proposes including additional bolded rule  
language in item 7 “In addition, for service agreements with  
builder associations who request multiple service  
installations, agreed installation date and site readiness by  
individual service address is required.”  
The third comment is in section R 460.2381 Gas Purity, states in part, “Gas  
that is distributed by a utility to a customer must not contain more than 0.3  
grains of hydrogen sulfide or more than 20 grains of total sulfur per 100 cubic  
feet……” DTE Gas proposes changing item 1 with the bolded changes to state,  
“Gas that is distributed by a utility to a customer must not contain more than  
0.3 0.25 grains of hydrogen sulfide or and more than 20 5 grains of total  
sulfur per 100 cubic feet, including the sulfur in any hydrogen sulfide.  
DTE Gas appreciates the opportunity to participate in the revision of the  
Technical Standards for Gas Service.  
Sincerely,  
Frenae F. Smith  
DTE Gas Comments  
U-20608  
Page 3 of 3  
Frenae F. Smith  
Manager  
Codes and Standards  
STATE OF MICHIGAN  
BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION  
In the matter, on the Commission’s )  
own Motion, to amend the rules  
)
)
Case No. U-20608  
governing the technical standards  
for gas service__________________/  
COMMENTS OF THE  
CITIZENS UTILITY BOARD OF MICHIGAN  
The Commission has extended the deadline for comments on the proposed amendments to the  
rules governing the technical standards for gas service until January 9, 2020. The Citizens Utility Board of  
Michigan (CUB) hereby files these comments, specifically related to the rescission of the rules dealing with  
bill adjustments and meter accuracy.  
CUB of Michigan is an independent, nonpartisan organization that represents the interests of  
residential natural gas and electric utility customers across the state. We receive philanthropic support and  
funding from the State of Michigan's Utility Consumer Representation Board for our mission.  
The proposed amendments seek to rescind Rule 460.2361, R460.2363 and R460.2364, which have  
been used by customers of utilities for years to seek refunds for improperly registered meters and to make  
payment arrangements for meter readings which underestimate the proper bill of a customer. CUB asserts  
that these rules should not be rescinded.  
Although the Rules governing Consumer Standards and Billing Practices contain a provision  
(R460.116) which allows for the refund of overbillings, it specifically refers to the reconciliation of the bill to  
be done pursuant to Rule 460.2364, a rebilling rule, which would be eliminated in the proposed rules.  
Moreover, R460.2361 and R460.2363 provide for the standards for determining an inaccurate bill and the  
period for determining when an inaccurate bill would be considered. These rules would also be eliminated,  
resulting in customers not being able to refer to any rule relating to the amount of a billing dispute or the  
period of a billing adjustment, when making a claim for an inaccurate billing.  
CUB also wholeheartedly endorses the comments filed by the Michigan Department of Attorney  
General (U-20608-0009). As the Attorney General points out, the amendment to R460.2362 would not  
adequately recognize the substantial investments already made by utilities in advanced metering  
infrastructure in order to provide remedies for metering inaccuracies. We support the Attorney General’s  
other arguments that: 1.) allowing an overregistering meter to overcharge customers for up to 6 months is  
unreasonable, and 2.) that customers should not be back-billed for underbilling from meters that are  
malfunctioning by no fault of the customer.  
For the foregoing reasons, CUB urges the Commission not to rescind R460.2361, R460.2363  
and R460.2364. Ultimately, the Commission may wish to incorporate these standards in the Consumer  
Standards and Billing Practices. But for now, these provisions should remain in place for the benefit of  
natural gas customers.  
January 7, 2020  
Respectfully Submitted  
Amy Bandyk, Executive Director  
Robert B. Nelson, President  
Citizens Utility Board of Michigan  
921 N. Washington Ave  
Lansing, MI 48906  
248-385-3167  
STATE OF MICHIGAN  
DEPARTMENT OF ATTORNEY GENERAL  
P.O. BOX 30755  
L
ANSING, MICHIGAN 48909  
DANA NESSEL  
ATTORNEY GENERAL  
January 9, 2020  
Ms. Lisa Felice  
Executive Secretary  
Michigan Public Service Commission  
7109 West Saginaw Highway  
Lansing, MI 48917  
Dear Ms. Felice:  
Re: MPSC Case No. U-20608 – In the matter, on the Commission’s  
own motion, to issue amend the rules governing the technical standards for  
gas. Attorney General’s Supplemental Comments  
On December 4, 2019, the Attorney General provided written comments on  
the proposed amended Gas Technical Standards for Gas Services. The comments  
addressed a few of the proposed amendments and provided recommendations on  
changes that should be made to provisions addressing meter accuracy. Subsequent  
to her submittal, the Commission issued another order dated December 19, 2019  
extending the deadline for submitting comments to January 9, 2020. After further  
consideration, the Attorney General is submitting additional comments to  
supplement her December 4, letter regarding the refund remedy available to  
ratepayers to address meter inaccuracies.  
As noted previously, the proposed rules would rescind R460.2363 which deals  
with refunds resulting from metering inaccuracies presumably relying on R460.115  
to address that issue. However, on further review the Attorney General is  
requesting that the Commission not rescind R460.2363 in its entirety because  
R460.115 which is contained in Consumer Standards and Billing Practices for  
Electric and Natural Gas Services does not adequately address everything that is  
currently addressed in R460.2363(1).  
Rule 63(1) provides that “Refunds shall be made to the 2 most recent  
customers who received services through the meter found to be registering  
inaccurately. If the utility has not adopted the requirements of R460.2352, the  
period that is used for determining the amount to be refunded shall not be more  
than 12 months. If the utility has adopted the requirements of R460.2352, the  
period that is used for determining the amount to be refunded shall be the period of  
inaccurate meter registration that is determined pursuant to the provisions of  
R460.2362(1) to (2). In the case of a previous customer who is no longer a customer  
of the utility, a notice of the amount of the refund shall be mailed to his or her last  
known address and the utility shall, upon demand made within 3 months, refund  
the amount.”  
R460.2362(1) provides that if the date that the period of inaccurate meter  
registration began can be determine, that will be the date used as the starting point  
for making an adjustment under the provisions of R460.115. And, proposed rule  
62(2) provides that “[i]f the date that the period of inaccurate meter registration  
began cannot be determined, it shall must be assumed that the inaccuracy existed  
for a period equal to ½ of the time elapsed since the meter was last installed on the  
present premises or tested.”  
With regard to refunds to customers for meter errors, Subrule 15(4) limits  
such refunds to the 12-month period immediately preceding discovery of the error.  
R460.115 provides in part:  
(2) … A utility shall calculate the period and amount of inaccuracy for gas meters  
pursuant to R460.2361 and R460.2362.  
***  
(4) Notwithstanding the provisions of any other rule, except in the case of  
unauthorized use of utility services, back billing of customers or refunds to customers  
for meter errors is limited to the 12-month period immediately preceding the  
discovery of the error… (emphasis added)  
Under R460.2362, the period of inaccuracy and therefore the adjustment may  
be longer than 12-months and under subrule 62(2) that period may be significantly  
longer, however R460.115 limits the refunds recoverable by ratepayers to just the  
12-month period preceding discovery of a metering error. The rules are inconsistent  
and to allow the amendments to be implemented without addressing these  
inconsistencies is not only unfair to ratepayers who may have had inaccurate  
meters for many years, it potentially gives the utilities who own the meters a  
windfall. More importantly, under the existing rules, there are ratepayers who are  
likely eligible for refunds for long-term metering errors that may have their refunds  
cut-off or reduced if these amendments take effect. Presumably that was not the  
intent of the amendments. Such an unintended result is patently unfair those  
ratepayers and must be remedied.  
Further, R460.115 does not specifically address refunds to previous  
ratepayers. As quoted above, R460.2363(1) provides for such refunds. Again, to  
cut-off refunds to such customers in not only unfair, it potentially provides the  
utilities with an unearned windfall.  
To address the problems identified above, the Attorney General requests that  
the Commission not rescind R460.2363(1). It provides a necessary element to  
ensure as much as possible that ratepayers overcharged by inaccurate meters  
receive just compensation. This letter is intended to supplement the comments in  
the Attorney General’s December 4, 2019 letter regarding refunds only. Her  
previous comments regarding limitations on back-billing and customer requests to  
have their meters tested remain unchanged.  
The Attorney General thanks the Commission for an opportunity to comment  
on the proposed amended rules.  
Sincerely,  
Celeste R. Gill (P-52484)  
Assistant Attorney General  
Michigan Department of Attorney  
General, Special Litigation Division  
Ph: 517-335-7627  
Email: gillc1@michigan.gov  
STATE OF MICHIGAN  
BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION  
* * * * *  
In the matter, on the Commission’s own  
motion, to amend the rules governing the  
technical standards for gas service.  
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Case No. U-20608  
_______________________________________)  
Joint Utility Comments  
The Michigan Public Service Commission (“Commission”), at its December 19, 2019  
meeting, issued an Order (“December Order”) to extend the opportunity for written comments on  
proposed changes to the Technical Standards for Gas Service (“Rules”) in the subject docket  
until January 9, 2020. During the previous opportunity to comment, on December 4, 2019, a  
group of natural gas utilities1 (“Joint Commenters”) filed comments in this proceeding to provide  
feedback on certain provisions of the proposed revised rules.  
Among the concerns raised by Joint Commenters related to the proposed adoption of the  
American Petroleum Institute (“API”) Standard 1164 (“API Standard”) as the applicable security  
standards in R 460.2345. Specifically, as the Commission noted in its December Order, Joint  
Commenters are concerned that the standard isn’t generally available and requires payment to  
API to obtain a copy. Joint Commenters noted that this could impair the ability of the public to  
access the standard. In response, the Commission made clear that a copy of the API Standard  
would be available at the Commission office for interested parties to review. Joint Commenters  
appreciate the Commission’s accommodation to make the API Standard publicly available,  
however, being required to physically be at the Commission office in order to view the standard  
is still a hinderance to public access.  
1 Joint Commenters include Consumers Energy, DTE Energy, and Michigan Gas Utilities.  
1
 
Aside from access to the API Standard, there is another related matter not raised directly  
in the Joint Commenters previous comments that is important to address. The API Standard  
1164 currently in effect and referenced in the proposed revisions to the Rules, is Version 2 from  
2009 and revised in 2016. It is well known in the industry that API has been in the process of a  
significant rewrite of the standard that is almost complete and about to go through the approval  
process. Current expectations are that Version 3 will be final and in effect mid-2021.  
The scope of the rewrite between Version 2 and Version 3 is such that significant  
changes will be required by each utility in order to comply. For this reason, Joint Commenters  
urge the Commission to hold approval of the proposed revised Rules, continuing under the  
existing standards, until Version 3 is in effect. It would not be in customers’ best interest to pay  
for changes now to a standard that is known to be imminently obsolete, and then have to do it  
again in a year or so.  
In the alternative, it would be valuable for the Commission to speak to the possibility of  
waivers for utilities on the API Standard requirement until the adoption of Version 3 to avoid a  
second round of cost being incurred. Such a waiver would allow the existing Transportation  
Security Administration Pipeline Security Guidelines,2 which is anticipated to be incorporated  
into API 1164 Version 3, to apply until Version 3 becomes the official standard.  
An additional item that will increase the efficiency of the revised Rules relates to meter  
testing. Specifically, allowing utilities to rely on manufacturer certification of new meters and  
eliminating the requirement to test meters that are removed due to obsolescence, both of which  
are consistent with the more recent Technical Standards for Electric Service.3 This can be  
accomplished by the following changes in red:  
2 Available at: https://www.tsa.gov/sites/default/files/pipeline_security_guidelines.pdf.  
3 See Technical Standards for Electric Service, sections R460.3602 and R460.3604.  
2
   
R 460.2351 Meters and associated metering devices; inspections; and tests; and records.  
Rule 51. Inspections and tests of meters and associated metering devices shallmust be made by,  
or on behalf of, each utility as follows:  
(a) A meter or an associated metering device that is not included as a part of the meter, or both,  
shallmust be inspected and tested before being placed in service, and the error shallmust not be  
not more than 1.0%. A utility may rely on the certification of accuracy by the manufacturer on  
all new meters. In place of this requirement, methods of sample testing that are acceptable to the  
commission may be used.  
(b) A meter or an associated metering device, or both, shallmust be tested after it is removed  
from service unless retired due to obsolescence. SuchThese tests shallmust be made before the  
meter or associated metering device is adjusted, repaired, or retired.  
Joint Commenters appreciate the Commission allowing additional time for review of the  
exiting API Standard and further comment in this docket, as well as consideration of the  
additional items raised herein.  
Sincerely,  
Tanya Paslawski  
President  
Michigan Electric and Gas Association  
On behalf of Joint Commenters  
3
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