Michigan Gas Utilities seek rate increase 5.21

Written by David Green.

Citing inflationary increases to costs, Michigan Gas Utilities Corporation (MGUC), a subsidiary of Integrys Energy Group, 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 costs 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.”

  • Cecil
    THE MAYOR—Cecil Schoonover poses with a collection of garden gnomes that mysteriously arrive and disappear from his property. Along with the gnomes, someone created the sign stating that he is the Mayor of Gnomesville. He hasn’t yet tracked down the people involved in the prank, but he’s having a good time with the mystery.
  • Front.rest
    TAKE A BREAK—Last Wednesday’s session of Stair District Library’s Summer Reading Program ended with a quiet period in a class presented by yoga instructor Melany Gladieux of Toledo. Children learned a variety of yoga poses in the main room at the library, then finished off the session relaxing. Additional photos are on page 7. Area children are invited to visit the library today when the Michigan Science Center presents a flight program at 11 a.m. and roller coasters at 1 p.m.
  • Front.batter
    THE DERBY—Tyler “Smallpox” Flakne of Minnesota’s Home Run League All-Stars goes for the fence Friday night during the National Wiffle League Association’s home run derby in Morenci. This year the wiffleball national tournament moved from Dublin, Ohio, to Morenci’s Wakefield Park. During the derby, competitors had two minutes to hit as many home runs as possible. The winner this year finished with 21. See page 6 and 7 for additional photos.
  • Front.green Screen
    OUT OF THIS WORLD—Elizabeth McFadden and Elise Christle pose in front of the green screen as VolunTeen Noah Gilson makes them appear as though they are standing on the Moon. More photos from the Stair District Library’s NASA @ My Library program are on page 12.
  • Front.snake
    Lannis Smith of the Leslie Science and Nature Center in Ann Arbor shows off a python last week at Stair District Library's Summer Reading Program.
  • Front.fireworks
    FIREWORKS erupt Saturday night over Morenci’s Wakefield Park during the waning hours of the Town and Country Festival. Additional festival photos are inside.
  • Pipeline Spread
    LINED UP—Lengths of pipe were put in place last week along the route of the Rover natural gas pipeline that will stretch from Defiance, Ohio, to Ontario, Canada. Topsoil was removed before the pipes were laid out. The 42-inch diameter pipeline is scheduled for completion in November.
  • Front.rock Study
    ROCKHOUNDS—From the left, Joseph McCullough, Sean Pagett and Jonathan McCullough peer through hand lenses to study rocks. The project is part of Morenci Elementary School’s summer camp that continues into August.

Weekly newspaper serving SE Michigan and NW Ohio - State Line Observer ©2006-2017