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Rates going up for Michigan Gas Utilities customers

LANSING, MI (WTVB) - Customers of Michigan Gas Utilities will be getting another reminder of just how frigid this past winter was. The State Public Service Commission has granted MGU permission to recover more natural gas costs than it had originally requested, citing the colder than usual winter. The utility will be allowed to temporarily charge a monthly gas cost recovery or GCR factor of $5.74 per thousand cubic feet beginning in the next billing month. The GCR factor indicates the actual amount of natural gas a customer uses.

The MPSC says regulated utilities companies make no profit from the sale of natural gas. MGU had initially asked for a $4.77 GCR factor back in December but then amended its request in March citing higher gas prices from the colder winter. The Public Service Commission said in a news release that it agreed to the higher GCR factor on Friday to lessen the potential under-recovery of natural gas costs and the associated interest that would fall to customers.