February 22, 2008

The Michigan Public Service Commission (MPSC) today issued an order initiating a formal investigation into the marketing and customer service policies and practices of Universal Gas & Electric Corporation (UGE).  The Commission also rescinded the company's license as an alternative electric supplier (AES), at the company's request.

On Jan. 29, the MPSC, aware of numerous customer complaints under the company's alternative gas supplier (AGS) license, conditionally granted the company a license as an AES.  The license was conditioned on the company submitting periodic reports detailing any complaints it receives and its plans to correct any problems it discovers.

On Feb. 1, UGE filed a motion requesting that the Commission rescind its AES license.

Today, in Case No. U-15420, the MPSC granted the company's request and rescinded its AES license.

In Case No. U-15509 et al., the MPSC today initiated a formal investigation into the marketing and customer service policies and practices of UGE.  The Commission today directed UGE to file a series of reports detailing any complaints it receives and its plans to correct any problems it discovers.  The first report is due in 30 days.  After that, reports are required every three months for the next year.  Along with each report, UGE has also been directed to file progress reports on its plans to end any problems.

After the filing of each report and progress report, the MPSC staff will review the company's complaint history and its progress reports to determine whether, and to what extent, UGE has eliminated the root causes of complaints and whether it has complied with AGS regulatory requirements.  If the MPSC staff determines the company is not making satisfactory progress in correcting any problems with marketing and customer service, the staff may recommend the levy of fines and costs or that the MPSC should begin a proceeding to revoke the company's license to operate as an AGS in Michigan.

Universal Gas & Electric Corporation is a wholly-owned subsidiary of Universal Energy Group Ltd., a publicly-traded company with its headquarters in Toronto, Ontario, Canada.

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

Case Nos. U-15420 and U-15509 et al.