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AG Nessel secures rate increase reduction, new consumer programs in settlement with Michigan gas utility company

Christian Fernsby |
Intervention by Attorney General Dana Nessel in a rate case before the Michigan Public Service Commission (MPSC) resulted in a settlement roughly 40% lower than the requested rate increase submitted by Michigan Gas Utilities Corporation (MGUC).

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The agreement also includes important assistance programs that will benefit consumers.

The MPSC approved the $9.25 million settlement last week, $6 million less than MGUC's original request of $15.1 million. The rate increase for customers is around 4.9% for residential customers compared to the requested 8.2% increase.

The approved settlement also includes:

implementation of a new low-income senior bill assistance program that will provide bill credits of $6.50 a month;

a residential income allowance of $13 a month;

a low-income allowance credit of $30 a month; and

a $100,000 shareholder donation to give grants to customers at 150% of the federal poverty level to eliminate outstanding debt, which will be set up by the end of this month.

"I'm pleased with this settlement outcome, which both reduces the burden consumers will ultimately feel while implementing new assistance options," Nessel said. "My office will continue to advocate for consumers in a way that prioritizes utility customers over company shareholders."

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