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.”

  • Front.cowboy
    A PERFORMER named Biligbaatar, a member of the AnDa Union troupe from Inner Mongolia, dances at Stair District Library last week during a visit to the Midwest. The nine-member group blends a variety of traditions from Inner and Outer Mongolia. The music is described as drawing from “all the Mongol tribes that Genghis Khan unified.” The group considers itself music gatherers whose goal is to preserve traditional sounds of Mongolia. Biligbaatar grew up among traditional herders who live in yurts. Additional photos are on the back page of this week’s Observer.
  • Front.base Ball
    UMPIRE Thomas Henthorn tosses the bat between team captains Mikayla Price and Chuck Piskoti of Flint’s Lumber City Base Ball Club. Following the 1860 rules, after the bat was grabbed by the captains, captains’ hands advanced to the top of the bat—one hand on top of the other. The captain whose hand ended up on top decided who would bat first. Additional photos of Sunday’s game appear on page 12 of this week’s Observer. The contest was organized in conjunction with Stair District Library’s Hometown Teams exhibit that runs through Nov. 20.
  • Front.chat
    VALUE OF ATHLETICS—Morenci graduate John Bancroft (center) takes a turn at the microphone during a chat session at the opening of the Hometown Teams exhibit at Stair District Library. Clockwise to his left is John Dillon, Jed Hall, Jim Bauer, Joe Farquhar, George Hollstein, George Vereecke and Mike McDowell. Thomas Henthorn (at the podium) kicked off the conversation. Henthorn, a University of Michigan–Flint professor, will return to Morenci this Sunday to lead a game of vintage base ball at the school softball field.
  • Front.cross
    HUDSON RUNNER Jacob Morgan looks toward the top of the hill with dismay during the tough finish at Harrison Lake State Park. Fayette runner Jacob Garrow focuses on the summit, also, during the Eagle Invitational cross country run Saturday morning. Continuing rain and drizzle made the course even more challenging. Results of the race are in this week’s Observer.
  • Front.bear
    HOLDEN HUTCHISON gives a hug to a black bear cub—the product of a taxidermist’s skills—at the Michigan DNR’s Great Youth Jamboree. The event on Sunday marked the fourth year of the Jamboree. Additional photos are on page 12.
  • Front.hose Testing
    HOSE safety—The FireCatt hose testing company from Troy put Morenci Fire Department hose to the test Monday morning when Mill Street was closed to traffic. The company also checks nozzles and ladders for wear in an effort to keep fire fighters safe while on calls.

Weekly newspaper serving SE Michigan and NW Ohio - State Line Observer ©2006-2016