Michigan Gas Utilities announced price increase 1.21.09

Written by David Green.

Citing inflationary increased costs over the past five (5) years, Michigan Gas Utilities Corporation (MGUC), a subsidiary of Integrys Energy Group (NYSE: TEG), today received approval to increase gas delivery rates.  The increase was approved by the Michigan Public Service Commission (MPSC), and will become effective tomorrow, January 14, 2009.  The new rates result in a monthly increase of about $2 for the typical residential customer.

“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 Chuck Cloninger.  “We are sensitive to our customers’ frustration at energy costs, and we have held the increase to a minimum,” he added.

The rate increase is only related with the delivery of the natural gas commodity, which makes up about 21-percent of the total bill for a typical residential customer.  The Gas Cost Recovery (GCR) Charge on customer bills is not affected by this rate request, and MGUC does not profit from GCR costs.  It simply passes the GCR costs through to customers with the oversight of the MPSC.  

“We do have some good news to pass along,” said Cloninger.  “The GCR began the month of January 30% lower than it was in November and December.  This is a significant decrease, since the GCR is the largest portion of the bill.”


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