MichCon Wants Rate Hike, Says Bills Would Be Less

DAVID EGGERT

LANSING, Mich. (AP) — Michigan Consolidated Gas Co. wants to charge more to deliver natural gas to customers in 2010 but says the average residential customer's heating bill still would be less than it is now.

That's because customers are using less heat and natural gas is cheaper, according to utility officials who expect the trend to continue.

MichCon, a subsidiary of DTE Energy Co., the state's largest utility, on Tuesday filed a request with the Public Service Commission to raise base distribution rates for the first time since 2005. The rate covers the cost to deliver gas to homes and businesses, maintain the distribution system, make repairs and offer customer service.

The utility says that even with the rate increase, a customer's total gas bill in 2010 will be 5 percent less than in 2008. The average annual residential bill was $1,500 in 2005 and is projected to be $1,160 in 2010, a 23 percent decline. The average yearly bill was $1,224 last year.

The annual distribution charge would go from $315 to $379 a year — generating $193 million in revenue for MichCon. The distribution charge accounts for about one-third of a typical customer's bill.