MPSC Issues 2006 Annual Report

Contact: Judy Palnau (517) 241-3323

March 2, 2007

The Michigan Public Service Commission (MPSC) today issued its 2006 annual report to Governor Jennifer M. Granholm and the Michigan Legislature.

"The MPSC in 2006 took significant actions to protect utility customers in Michigan," said MPSC Chairman J. Peter Lark. "From awarding $83 million in grants to low-income and senior citizen customers, to cutting electric rates for Detroit Edison residential and business customers, the MPSC has continued to safeguard the interests of utility customers in Michigan."

Lark summarized the report by noting the following:

• The Commission maintained its commitment to address the needs of Michigan's low-income and senior citizens, awarding $70,000,000 for low-income energy assistance and $13,000,000 for low‑income energy efficiency from the Low-Income and Energy Efficiency Fund. The awards provide immediate assistance for heating needs as well as longer term assistance in reducing future heating costs for low-income and senior citizens. Additionally, the Commission enhanced its Be WinterWise Web site, and promoted Lifeline telephone assistance awareness and a Beat the Heat and Save campaign for summer conservation.
  
  
• The Commission continued its consumer outreach efforts by hosting statewide consumer forums, making its Commission meetings available via podcast, handling 41,000 calls on its toll-free telephone line, and assisting consumers and businesses with more than 11,000 electric and natural gas and 7,500 telecommunications complaints and inquiries.
  
  
• The Commission issued 438 orders, consisting of 164 communications, 165 electric, 71 natural gas, and 38 motor carrier orders.
  
  
• On August 31, 2006 , the Commission approved a settlement agreement that reduced Detroit Edison's electric rates for residential and business customers by $78.75 million, for an annual decrease of about $6 per residential customer. The Commission initiated the case and directed the company to show cause why its retail electric rates should not be reduced, citing reduced labor costs and a decline in electric choice customer sales.
  
  
• On November 21, 2006, Consumers Energy received authorization to increase its natural gas revenues by a total of $80,804,000 annually to cover the growing costs for natural gas operations, pensions and retiree health care and provide $17 million to the Low-Income Energy Efficiency Fund. The Commission-authorized increase was significantly below the company's request of $132,400,000 annually.
  
  
• The Protect MI Child Registry marked its first anniversary on July 1, 2006. Throughout the year, the Commission engaged in community outreach efforts to educate the public about the registry. As of December 31, 2006 , over 122,335 contact points are being protected by the registry.
  
  
• In February 2006, the Commission further expanded its paperless electronic program so that 66 percent of the cases are filed electronically. The Commission processed and posted 6,173 documents filed electronically to the e-file system, and nearly 3 million e-filed documents were downloaded from the Commission's Web site.
  
  
• Some 350 individuals representing 150 organizations assisted Chairman Lark in developing a comprehensive assessment of Michigan's long-term electric capacity needs and policy proposals during 2006. These efforts culminated in submission by the Chairman of a 21st Century Energy Plan to Governor Granholm on January 31, 2007.

The entire report is available on the MPSC Web site: michigan.gov/mpsc.

The MPSC is an agency within the Department of Labor & Economic Growth.