The increase, if approved, is expected to result in a monthly increase of about $6 for the typical residential customer using 92,000 of natural gas annually.
Additionally, Michigan Gas Utilities Corporation (MGUC) is asking for a 4.4% interim increase, subject to refund, while the Michigan Public Service Commission considers the overall request. The commodity cost of natural gas is reportedly not affected by this rate request.
The utility noted that natural gas commodity prices continue to be volatile and current indications are that prices could be higher in winter 2009.
Gary Erickson, MGUC’s president, said: Due to inflation, our costs have risen over the past five years, so we need this increase to recover those increased costs. We are sensitive to our customers’ frustration at rising energy costs and we have tried to hold our request to a minimum.
