Attorney General Aims to Cut Proposed Monthly Utility Price Increase

Attorney General Mike Cox filed testimony before the Michigan Public Service Commission (MPSC) recently challenging proposals by Consumers Energy, Michigan Consolidated Gas, Aquila, and SEMCO ENERGY to increase monthly winter heating bills by $42 to $102 per month. These potential increases affect 99% of all natural gas customers in the state.

"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.