
| COMMISSIONERS | CONTACTS |
| Laura Chappelle, Chairman | Mary Jo Kunkle |
| David A. Svanda | 517-241-3323 |
| Robert B. Nelson | |
LANSING, November 20. The Michigan Public Service Commission today set
in motion a process for reviewing an increase in the gas cost recovery charge
proposed by Michigan Consolidated Gas Company to take effect on January 1, 2002.
Public Act 304 of 1982 established the periodic review of the cost of gas paid
by Michigan gas customers and permitted natural gas companies to self-implement
up to the requested gas cost factor three months following the filing, unless
the Commission conducts a review and issues a ruling before January 1, 2002.
Today's order expedited hearings to allow all parties to the case to have an
opportunity to review the proposed increase before it is scheduled to
take effect. On August 31, 2001, Mich Con filed an application to charge its
customers $4.54 per thousand cubic feet (Mcf) of natural gas once its frozen gas
cost factor expires on January 1, 2002. Under a three-year customer choice
program, Mich Con's natural gas rates have been frozen at $2.95 per Mcf. The
$2.95 per Mcf was established in 1998 and remained unchanged over the three-
year period, as a result of a previous Commission order which established Mich
Con's gas customer choice program.
MPSC staff, Mich Con, the Residential Ratepayers Consortium, Attorney
General Jennifer M. Granholm, and the Michigan Community Action Agency
Association are participating in the proceeding.
Mich Con is a subsidiary of DTE Energy and provides natural gas service
to about 1.2 million Michigan customers.
The MPSC is an agency within the Department of Consumer and Industry Services.
Case No. U-13060
November 20, 2001
(MPSC sets a hearing for Mich Con's proposed gas cost recovery factor)