DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

                         PUBLIC SERVICE COMMISSION

                    TECHNICAL STANDARDS FOR GAS SERVICE


(By authority conferred on the public service commission by section  6  of
Act No. 3 of the Public Acts of 1939, as amended, and  section  2  of  Act
No. 165 of the Public Acts of 1969,  being  SS460.6  and  483.152  of  the
Michigan Compiled Laws)


                        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.
  (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 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.
  (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  or  business,  excluding  other  gas
utilities, that purchases 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  a  utility
that is used in measuring a quantity of gas.
  (i) "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.
  (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 land or real estate, including buildings and  other
appurtenances thereon.
  (l) "Potentially hazardous condition"  means  any  condition  which  the
utility determines has the potential to become a hazardous condition,  but
which does not require immediate action. All of the following are examples
of potentially hazardous conditions:
  (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 460.14001  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.
  (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  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  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.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


R  460.2302   Application, intention, and interpretation of rules; utility
rules and regulations.
  Rule 2. (1) These rules apply to a gas utility which operates within the
state of Michigan  and  which  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 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 constitute an integral part of  the  utility's
rate book.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.

              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 be preserved by the utility  for  a  period  of  time
specified in R 460.2501 et seq. of the Michigan Administrative Code. If  a
time period is not specified in these rules or  in  R  460.2501  et  seq.,
records shall be preserved by the utility for not less than 1  year  after
the records are completed.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


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  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 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.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.

                       PART 3. SERVICE REQUIREMENTS

R  460.2331   Sale of gas.
  Rule 31. (1) All gas that is sold by a utility shall be on the basis  of
meter measurement, unless otherwise authorized by the commission.
  (2) The utility shall provide the characteristics 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, all meters which are  to  operate  at  ambient  outdoor
conditions and which are  installed  after  the  effective  date  of  this
subrule shall be installed 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 be assumed to be supplied and  metered
at 0.25 pounds per square inch gauge. The  low-pressure  system  shall  be
operated so that the gauge pressure at the outlet of the  meter  shall  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  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 shall be  corrected  to
standard billing conditions as defined in R 460.2301(d)(i).
  (b) Gas volume corrections for temperature shall be made  in  accordance
with Charles' law. Gas volume corrections for pressure shall  be  made  in
accordance   with   Boyle's    law.    Gas    volume    corrections    for
supercompressibility shall be  made  in  accordance  with  either  of  the
following publications of the American  gas  association  (AGA),  both  of
which are adopted by reference in 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," (1962) (A.G.A. Catalog No. L00340). . $35.00.
  (ii) "Compressibility and Supercompressibility for Natural Gas and Other
Hydrocarbon Gases,  Transmission  Measurement  Committee  Report  No.  8,"
(1992) (A.G.A. Catalog No. . . . . . . . .$80.00 ($40.00 for AGA members).
  (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 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 be calibrated using the actual atmospheric pressure or a  reasonable
estimate thereof.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


R  460.2332   Permanent service line rules.
  Rule 32. Within 30 days after a company commences  operating  as  a  gas
utility, the utility shall file its service line  installation  rules  for
commission approval.  Such  rules  and  regulations  shall  constitute  an
integral part of the utility's rate book.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


R  460.2333   Main extension rules.
  Rule 33. Within 30 days after a company commences  operating  as  a  gas
utility, the utility shall file its main extension  rules  for  commission
approval. Such rules and regulations shall constitute an integral part  of
the utility's rate book.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


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
pursuant to the provisions of R 460.2371 to R 460.2374.
  (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 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  on
its entire system or in major divisions or  operating  districts  thereof.
The records shall 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  Code,  and
shall periodically make an analysis of the  records  for  the  purpose  of
determining  steps  to  be  taken  to  prevent  the  recurrence  of   such
interruptions.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.

                            PART 4. ENGINEERING

R  460.2342   Standards of accepted engineering practice.
  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.G.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 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).
  (ii) "NFPA Standard 59, Storage  and  Handling  of  Liquefied  Petroleum
Gases at Utility Gas Plants," (1992) $18.75 ($17.00 for NFPA members).
  (iii) "NFPA Standard 59A, Production, Storage and Handling of  Liquefied
Natural Gas (LNG)," (1990) $18.75 ($17.00 for NFPA members).
  (d) The following American society  for  testing  and  materials  (ASTM)
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  ASTM,  1916  Race   Street,
Philadelphia,  Pennsylvania  19103-1187,  (215)  299-5585,  or  from   the
Michigan Public Service Commission, 6545 Mercantile Way, P.O.  Box  30221,
Lansing, MI 48909:
  (i) ASTM specification D-1826 "Calorific Value of Gases in  Natural  Gas
Range by Continuous Recording Calorimeter," (D1826-88) $15.00.
  (ii) ASTM specification D-1945 "Method for Analysis of  Natural  Gas  by
Gas Chromatography," (D1945-91) $18.00.
  (iii) ASTM specification D-3588 "Method for Calculating Calorific  Value
and Specific Gravity (Relative  Density  of  Gaseous  Fuels),"  (D3588-91)
$15.00. Many of ASTM's publications are now stored at University Microfilm
International,  300  N.  Zeeb  Road,  Ann  Arbor,  Michigan  48106,  (313)
761-4700.
  (e) General rules of the construction  code  commission,  which  may  be
ordered from the Construction  Code  Commission,  Michigan  Department  of
Labor, State Secondary Complex, 7150  Harris  Drive,  Lansing,  MI  48926,
(517) 322-1701.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


R  460.2343   Rescinded.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; rescinded 1993 MR 6,
Eff. July 10, 1993.

                       PART 5. INSPECTION OF METERS

R  460.2351   Meters and  associated  metering  devices;  inspections  and
tests.
  Rule 51. Inspections and tests of meters and associated metering devices
shall 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 be inspected  and  tested  before  being
placed in service, and the error shall 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  be  tested
after it is removed from service. Such tests  shall  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  be
leak-tested before being returned to service,  subject  to  the  following
requirements:
  (i) If tested in the field, a meter shall be tested at the actual  meter
operating pressure of the system.
  (ii) If tested in the shop, a meter shall be subjected  to  an  internal
pressure test of not less than 3.0 pounds per square inch  gauge  pressure
and, in addition, any meter that will operate above 3.0 pounds per  square
inch gauge pressure shall be so marked on the meter and shall be subjected
to 1 of the following tests:
  (A) An internal pressure test of 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 the commission.
  (iii) During the pressure test, the meter shall 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  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  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 be made to the customer by the utility.  The
report shall state the results of the test. A record of the test shall  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  be  conducted
according to the following schedule, unless otherwise  authorized  by  the
commission:
  (i) Positive displacement diaphragm-type meters that have capacities  of
500 cubic feet per hour and under 10 years.
  (ii) Positive displacement diaphragm-type meters  that  have  capacities
over 500 cubic feet per hour 7 years.
  (iii) Other meter types, such as proportional, rotary, and turbine,  may
be tested in place when possible 2 years.
  (iv) Orifice meters 6 months.
  (v) Gas instruments, such  as  base  volume,  base  pressure,  and  base
temperature-correcting  devices,  shall  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.
  (vi) Test bottles, 1 cubic foot 10 years.
  (vii) Deadweight testers 10 years.
  (viii) Certified test meters 10 years.
  (ix) Meter testing systems shall be calibrated when first installed  and
after alterations, damages, or repairs  that  might  affect  accuracy.  To
assure that the accuracy of a meter testing  system  is  maintained  on  a
continuous basis, a daily leakage test shall be made and a weekly accuracy
test with a comparison meter of known accuracy shall 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 be determined and necessary corrections shall
be made before the system is reused. The comparison meter shall be checked
at an interval of 1 month.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


R  460.2352   Diaphragm-type meters; meter tests; reports.
  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

  (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.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1984 MR 6, Eff. June
28, 1984; 1993 MR 6, Eff. July 10, 1993.


R  460.2354   Accuracy of metering equipment; tests; standards.
  Rule 54. (1) The utility shall use  the  applicable  provisions  of  the
standards listed in R 460.2342 as criteria of accepted practice in testing
meters.
  (2) Metering equipment shall be tested by comparison with the  standards
that are referenced in R 460.2342.
  (3) A gas service meter that is repaired or removed from service for any
cause shall, before installation, be tested and  adjusted  to  be  correct
within 1% fast or 1% slow.
  (4) Every diaphragm-type gas meter shall 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 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 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 (which is adopted by reference in R 460.2342(b)(ii)), or by
more than plus or minus 10 minutes in 24 hours under field conditions.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


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 shall be open for inspection by  authorized  representatives  of  the
commission at all reasonable times. A utility may  secure  authority  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 shall
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 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 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:
  (a) Means shall 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 be maintained in good  condition  and
in correct adjustment so that it  shall  be  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)  shall  be  checked  by
comparison with a secondary standard. Both  of  the  following  provisions
shall be complied with:
  (a) At least once every 5 years, bell and flow provers shall be  checked
with  a  1-cubic  foot  bottle  or  shall  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 be traceable to  the
national institute of standards and technology.
  (b) At least once every 10 years, rotary displacement  transfer  provers
shall be checked with a standard that has its calibration traceable to the
national institute of standards and technology or shall be checked by  any
other suitable test that is approved by the commission.
  (5) Extreme care shall be exercised in the use and handling of standards
to assure that their accuracy is maintained.
  (6) Each standard shall have a certificate  or  calibration  card  which
shall be duly signed and dated and which shall 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.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


R  460.2356   Pressure measurement standards.
  Rule 56. (1) For its working pressure measurement standards,  a  utility
shall have  manometers,  laboratory-quality  indicating  pressure  gauges,
field-type deadweight pressure gauges, or any other instruments that  have
an accuracy error of not more than 1/2 of 1% of full scale, which shall be
used to test the indicating and recording pressure gauges that are used in
determining the pressure on the utility's system.
  (2) For its secondary pressure measurement standards,  a  utility  shall
own, or have access to, a pressure-testing instrument that has an accuracy
error of not more than 1/10 of 1% of full scale, which shall  be  used  to
verify the accuracy of its  working  pressure  measurement  standards.  An
instrument that is used as a secondary pressure measurement standard shall
be maintained in an accurate condition.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


R  460.2357   Records; meter tests.
  Rule 57. (1) A utility shall maintain records of the last 2  tests  made
on any meter. The record of the meter test made at the time of the meter's
retirement shall be maintained for a minimum of 3 years.
  (2) Test records shall include the following information:
  (a) The date and reason for the test.
  (b) The index reading of the meter at  the  time  of  removal  from  the
customer's premises.
  (c) The meter accuracy "as found."
  (3) If the test of the meter is made by using  a  test  meter,  transfer
prover, or flow prover, the utility shall retain,  as  test  records,  all
data taken at the time of the test in complete form to permit the checking
of the test methods and the calculations.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.

                  PART 6. BILL ADJUSTMENT; METER ACCURACY

R  460.2361   Bill adjustment; meter accuracy.
  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.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


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  be  the  starting
point for calculating an  adjustment  pursuant  to  the  provisions  of  R
460.2361.
  (2) If the date that the period of inaccurate meter  registration  began
cannot be determined, it shall 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.
  (3) The adjustment  shall  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  be
used.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


R  460.2363   Refunds.
  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.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


R  460.2364   Rebilling.
  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.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.

                        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.
  Rule 71. (1) A utility shall not establish gas service to  a  customer's
premises until the utility has done both of the following:
  (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 the utility liable for  the
installation, maintenance, or use of piping or appliances that  are  owned
by the customer, nor shall the utility be held liable for  any  continuing
duty of inspection of piping or appliances.
  (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 be kept by the utility of all cases where refusal  to
establish service is made. The record shall 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.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


R  460.2372   Gas facilities hazard.
  Rule 72. When a utility acquires knowledge that a customer's action  has
caused a hazardous condition to exist with respect to a gas facility,  the
utility shall initiate the following action depending on the facility that
is involved:
  (a) For a utility's facilities, the utility shall correct the  condition
at the expense of the customer or shut off service to the customer.
  (b) For a customer's facilities, the utility shall correct the condition
at the expense of the customer,  if  such  action  is  authorized  by  the
utility's service policy and if  the  customer  consents.  Otherwise,  the
utility shall shut off service to the customer  until  the  condition  has
been corrected.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


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.
  (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.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


R  460.2374   Customer notification of shutoff of service.
  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.

  History:  1993 MR 6, Eff. July 10, 1993.

                            PART 8. GAS QUALITY

R  460.2381   Gas purity.
  Rule 81. (1) Gas that is distributed by a utility to  a  customer  shall
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 not contain
flammable liquids in quantities that interfere with the  normal  operation
of the customer's equipment.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


R  460.2382   Heating value; authorized variations.
  Rule 82. (1) The heating value of substitute natural gas and  mixed  gas
shall be considered as being under the control of the utility. The average
heating value on 1 day shall 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
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.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


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
gas it distributes. Heating value test records shall be preserved for  not
less than 6 years. A utility shall utilize either the  industry  standards
that are adopted by reference in R 460.2342(d) or other standards that are
approved by the commission for heating value determination methods.
  (2) Heating value measuring equipment shall  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 meet the industry standards  that  are
adopted by reference in R 460.2342(d) or shall otherwise  be  approved  by
the  commission.  Recording  equipment  shall  be  tested  not  less  than
annually.
  (4) The utility shall determine the heating value of substitute  natural
gas and mixed gas not less than 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.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; 1993 MR 6, Eff. July
10, 1993.


R  460.2384  Rescinded.

  History:  1954 ACS 96, Eff. July 21, 1978; 1979 AC; rescinded 1993 MR 6,
Eff. July 10, 1993.