Michigan Attorney General Mike Cox Fights to Lower Michigan Families' Winter Heating Bills

29 October 2005

Attorney General Mike Cox announced today a settlement reached with SEMCO Energy and Michigan Consolidated Gas (MichCon) to provide customers with up to seventy-five percent off the utilities' proposed winter heating bill increases. Cox continues to challenge Consumers Energy and Aquila's proposed monthly increases of $42.00 to $56.60 on customer's winter heating bills.

"The settlement my office reached will significantly reduce families' winter heating bills," said Cox. "Senior citizens and people on a fixed income cannot afford such drastic increases. My office will continue to fight the energy companies to keep utility costs affordable, especially during the holidays."

In a settlement demand letter sent to the four major utilities on October 26, 2005, Cox demanded a reduction in the utilities' proposed monthly increases. On October 27, 2005, Cox reached a settlement with SEMCO and MichCon that was approved by the Michigan Public Service Commission at 11:30 a.m. today (Case No. U-14401, U-14402). MichCon sought to increase consumer bills this winter heating season by up to $102.20 and SEMCO sought increases of $76.40. Cox negotiated a substantial decrease to Michigan consumer's monthly heating bills by reducing these increases to only $25.90 for MichCon customers and $33.04 for SEMCO customers.(1)

The Michigan Gas Cost Recovery Statute (MCL 460.0(h)(10)) allows Michigan's natural gas companies to recover costs such as those associated with the increase in natural gas prices due to hurricanes Katrina and Rita. Cox's settlement with SEMCO and MichCon spreads a portion of these costs over five months, with the remaining costs to be collected over twelve months beginning in April 2006. Customers of these two utilities should expect to see the first increase on their natural gas bill in November.

This latest settlement 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.

(1) Assuming a customer uses 20 mcfs per winter month.

Source: PR Newswire

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