MARQUETTE — As the fall season kicks off, the Michigan Public Service Commission is advising that propane consumers make advance purchases to protect themselves from possible rapid shifts in rates throughout the winter months.

“It is still nice today but winter is coming as we all know,” MPSC Chair Dan Scripps said. “It often gets more expensive (in winter) but increasingly (propane) is a globalized market and that means more volatility. So for folks who want to weather those price swings they can, but if you want a little more certainty in terms of what you are going to pay through the winter months, it is a good time to think ahead.”

The MPSC is a state agency that regulates public utilities including electric power, telecommunications and natural gas services. While the MPSC doesn’t regulate propane prices, it has employees who monitor the cost of propane.

“Analysts is a great word,” Scripps said of the agency’s role. “We don’t actually regulate the propane in Michigan. We oversee it in terms of market monitoring and analysis. We’re responsible for energy emergenc(ies) when they happen, which are sometimes related to propane issues; but we do not regulate it in terms of price and availability in the way that we do electricity and natural gas, for example.”

Scripps said propane companies usually offer some cost management options if consumers call providers before winter strikes.

“We’ve seen in past years price spikes. In (the) winter of 2013 and ’14, for example, prices really spiked,” Scripps said. “And for those who were reliant on what was the price of propane during that time (they) ended up paying a lot more. Those who had locked in or prebought their propane for the year — well, they weren’t affected. So that is one of the things we try to (do), encourage folks to plan ahead….

“A lot of propane retailers offer you the chance to lock in prices and so the price you pay today is the price you pay all winter…. Also a number of propane retailers offer programs where you can spread out the cost; that you just pay your average propane bill. And that is great for folks who don’t use much propane in the summer.”

The MPSC is a public service organization that has a mission of ensuring safe, reliable and accessible energy in the form of natural gas, electricity and telecommunications services is provided at reasonable rates for the state’s consumers, officials said.

The MPSC is made up of three commission members: Scripps and commissioners Katherine Peretick and Tremaine Phillips.

Under the commissioners works a crew of 180 people, including engineers, gas safety specialists, accountants, lawyers and economists.

The MPSC also employs a group of employees who focus on energy emergencies and planning, with monitoring propane values being part of their duties, Scripps said.

MPSC regulates organizations such as Semco Energy Gas Co. and DTE Energy across the state. MPSC-regulated companies such as those have to make a case to MPSC in order to change their rates.

“They would file a rate case application with us and detail why they thought the rate increase is necessary; what it was going to fund, (such as) the increases in infrastructure. Then they have to make the case and those cases are open and contested cases,” Scripps said. “They’re sort of like court proceedings where we have other parties in the cases as well. The attorney general is usually there.

“Our staff in those cases plays an independent role. We don’t talk to our own staff during these cases because we want their professional judgment. Are these increases warranted? Is the accounting accurate? Are these projects necessary from a reliability and resilience perspective?

“Then at the end of that we issue an order and our responsibility is to balance what is reasonable and prudent in terms of what the utility wants to spend but also protecting ratepayers — their customers, who ultimately are the ones who pay the bills.”

The MPSC is composed of eight divisions, which are based on function:

≤ administrative services

≤ customer assistance

≤ energy operations

≤ energy resources

≤ regulated energy

≤ regulatory affairs

≤ strategic operations

≤ telecommunications

Overall, Scripps wants residents to know that the MPSC offers resources for ratepayers.

“Public service is in our name,” Scripps said. “If there are folks who have challenges paying their bills we have assistance programs. They can call 211 for that or they can go on our website, which is Michigan.gov/mpsc and there are links to the assistance programs there.”

He also reminds residents that Superior Watershed Partnership also offers energy conservation and assistance programs in the region.

Upper Peninsula residents needing energy assistance can call the Superior Watershed Partnership Energy Office at 906-273-2742.

Katie Segula can be reached at 906-228-2500, ext. 242. Her email address is ksegula@miningjournal.net.