Attorney General Aims to Cut Proposed Monthly Utility Price Increase

    LANSING, Mich., Oct. 18 /PRNewswire/ -- Attorney General Mike Cox filed
testimony yesterday before the Michigan Public Service Commission (MPSC)
challenging proposals by Consumers Energy, Michigan Consolidated Gas, Aquila,
and SEMCO ENERGY to increase monthly winter heating bills by $42 to $102 per
month.  These potential increases affect 99% of all natural gas customers in
the state.
    "To impose this high monthly rate increase on the working people of this
state is appalling and to assess such a dramatic increase during the expensive
winter heating season is unacceptable," said Cox.  "That is why I have
proposed a plan that would significantly cut the expected monthly rate
increase."
    In testimony filed October 17, 2005, before the MPSC, (Case Nos. U-14400,
14401, 14402, 14403) Cox proposed a plan for the four utilities to recover the
increased natural gas costs resulting partly from Hurricane Katrina and Rita
over a twelve-month period versus a four-month period as the utilities
proposed.  In addition, Cox's proposal delays the start of the rate increases
until April 1, 2006, when the expensive winter heating season is over.  Under
Cox's proposed plan, monthly gas bills would only increase by $10 to $25, as
opposed to the $42 to $102 proposed by the four utilities.(1)
    This latest testimony continues Attorney General Cox's aggressive approach
of challenging utility rate increases on behalf of Michigan consumers and
businesses.  In 2004, Cox's Consumer Protection Division helped stop more than
$400 million in utility rate increases.

    (1) Assuming a customer uses 20 mcfs per winter month.