Published:
Michigan Gas Utilities Seeks Natural Gas Delivery Rate Increase
MONROE, Mich., May 16 /PRNewswire/ -- Citing inflationary increases to
costs, Michigan Gas Utilities Corporation (MGUC), a subsidiary of Integrys
Energy Group (NYSE: TEG), today applied for an overall increase of 5.8 percent
in its natural gas rates. The increase, if approved, would result in a
monthly increase of about $6 for the typical residential customer using 92 MCF
of natural gas annually.
Additionally, MGUC is asking for a 4.4 percent interim increase, subject
to refund, while the Michigan Public Service Commission (MPSC) considers the
overall request.
The commodity cost of natural gas is not affected by this rate request.
"Due to inflation, our costs have risen over the past five years, so we
need this increase to recover those increased costs," said MGUC President Gary
Erickson. "We are sensitive to our customers' frustration at rising energy
costs and we have tried to hold our request to a minimum. For example, all
MGUC employees are now bearing more of the cost of employee benefits."
Erickson said that natural gas commodity prices continue to be volatile
and current indications are that prices could be higher next winter. MGUC does
not profit from the price of natural gas commodity. It simply passes the cost
of the natural gas commodity through to its customers, under the oversight of
the MPSC.
"The rate increase is only related with the delivery of the gas
commodity," Erickson said. "That makes up about 27 percent of the total bill
for a typical residential customer. The rest of the bill is the cost of the
natural gas commodity itself."
About Michigan Gas Utilities
Michigan Gas Utilities Corporation is a subsidiary of Integrys Energy
Group. MGUC is a natural gas utility, headquartered inMonroe, MI, serving
approximately 165,000 customers in lowerMichigan.
SOURCE Michigan Gas Utilities Corporation
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
Daily NewsTags: Oil, Gas and Energy, Utilities, , michigan
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