Attorney General Aims to Cut Proposed Monthly Utility Price Increase

"To impose this high monthly rate increase on the working people of this state is appalling and to assess such a dramatic increase during the expensive winter heating season is unacceptable," said Cox. "That is why I have proposed a plan that would significantly cut the expected monthly rate increase."

In testimony filed October 17 Cox proposed a plan for the four utilities to recover the increased natural gas costs resulting partly from Hurricane Katrina and Rita over a twelve-month period versus a four-month period as the utilities proposed.

In addition, Cox's proposal delays the start of the rate increases until April 1, 2006, when the expensive winter heating season is over. Under Cox's proposed plan, monthly gas bills would only increase by $10 to $25, as opposed to the $42 to $102 proposed by the four utilities (assuming a customer uses 20 mcfrs per winter month).

This latest testimony continues Attorney General Cox's aggressive approach of challenging utility rate increases on behalf of Michigan consumers and businesses. In 2004, Cox's Consumer Protection Division helped stop more than $400 million in utility rate increases.