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Thread: Consumers Energy and USIC.

  1. #1
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    Post Consumers Energy and USIC.

    LARA

    MPSC Accepts Administrative Consent Agreement on Consumers Energy Staking Procedures Resulting in Fine

    Contact:* Judy Palnau, 517-241-3323
    Agency:* Michigan Public Service Commission
    *

    September 26, 2014 *The Michigan Public Service Commission (MPSC) today issued a minute action acknowledging its acceptance of an Administrative Consent Agreement that Consumers Energy Company, USIC Locating Services, Inc., and the MPSC staff have entered into regarding staking procedures. Under the terms of the consent agreement, the utility has agreed to pay a $90,000 civil fine and establish benchmarks regarding future project staking services and reports.

    The MPSC staff performed an investigation in 2013 due to a complaint received by the Commission. The complaint alleged that USIC, a contractor of Consumers Energy, did not properly follow applicable safety standards when performing staking services on behalf of the utility in 2012. As a result of its investigation, the MPSC staff, in a Dec. 20, 2013 letter, determined the utility committed probable violations of the Michigan Gas Safety Standards and recommended a civil penalty.

    Under the terms of the consent agreement:

    The utility will pay $90,000 to the State of Michigan within 30 days;Excavators will follow safe digging practices, including the staking of natural gas facilities in an area prior to the commencement of any excavation activities, hand exposing of natural gas pipe as required within the caution zone, and reporting any dents or damage to natural gas pipe;USIC shall provide to Consumers Energy $160,000 worth of project staking services for the period beginning July 1, 2014 through Jan. 31, 2015;Annual project staking reports will be provided for calendar years 2014 through 2016 by Consumers Energy to the Gas Operations Section of the MPSC staff by March 15 of each subsequent year beginning in 2015 and ending 2017; andThe parties agree that this agreement has been negotiated in good faith and that neither this agreement nor actions taken by Consumers Energy or UISC in negotiation, execution or satisfaction of this agreement shall constitute or be construed as a finding or admission of any liability or violation of any law, rule, regulation or requirement.

    The MPSC is an agency within the Department of Licensing and Regulatory Affairs.
    Locator in NY likes this.

  2. #2
    Senior Member ProfessionalLocator's Avatar
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    Default Re: Consumers Energy and USIC.

    At last some public service commission is doing something right, fining the client company that hired the contract locating firm as well. Only when the client companies get fined will they take a serious interest in public safety. Keep this up properly and they will think twice on accepting low ball bid, you will only get what you pay for.
    TheCableVine, UULC, daman1 and 1 others like this.

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    Default Re: Consumers Energy and USIC.

    There up for bid at the moment aswell. We will see who gets the contract.

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    Default Re: Consumers Energy and USIC.

    What ever happened with this.

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    Default Re: Consumers Energy and USIC.

    this past incident has changed nothing . rules still being broken , damages still occurring , every now and then someone will get caught AND FINED but nothing changes . some lowly being toward the very bottom had his head rolled and maybe not even THAT happened .
    daman1 likes this.
    wise men talk because they have something to say and fools because they have to say something....plato

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    Senior Member ProfessionalLocator's Avatar
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    Default Re: Consumers Energy and USIC.

    Quote Originally Posted by yahoo View Post
    this past incident has changed nothing . rules still being broken , damages still occurring , every now and then someone will get caught AND FINED but nothing changes . some lowly being toward the very bottom had his head rolled and maybe not even THAT happened .
    It's only been four months, wheels like these move slowly.

    Most state locate industry oversight / regulatory bodies respond to complaints filed mostly by excavators. So they wait for complaints to come in to see if previous fines were effective. If a locate firm gets continuing complaints then they will start actions or investigations on their own. The process is seldom less than 1 to 2 years.

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    Default Re: Consumers Energy and USIC.

    they have not announced a winner for the bid yet. to my knowledge

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    Default Re: Consumers Energy and USIC.

    USIC retained the contract

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    Default Re: Consumers Energy and USIC.

    Quote Originally Posted by hellbilly View Post
    USIC retained the contract
    When you bid $3.00/ticket, these things happen.

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