LANSING – Continuing her efforts to protect Michigan ratepayers, Michigan Attorney General Dana Nessel has filed testimony before the Michigan Public Service Commission (MPSC) to slash SEMCO Energy Gas Company’s natural gas rate hike case by 66%. Attorney General Nessel intervenes in every major utility rate case before the MPSC and has helped save Michigan consumers more than $4.6 billion in proposed rate hikes. Other rate hike cases currently open before the MPSC include Consumers Energy’s natural gas rate hike request (U-21981) and electric rate hike request (U-22070), DTE’s natural gas rate hike request (U-21973) and electric rate hike request (U-22046), and Upper Peninsula Power Company’s electric rate hike request (U-22032).

“Whether a utility sells to millions of customers or a few hundred thousand, Michiganders should not be forced to foot the bill for unjustified corporate expenses and inflated bonuses for executives,” said Attorney General Nessel. “My office intervenes in every single one of these cases because residents deserve to have an advocate in their corner who fights for them. The MPSC must protect ratepayers and ensure any approved rate is in the best interest of the people of this state.”

SEMCO is currently seeking a $61.3 million rate hike, which would result in a 15% overall increase to gas rates. If the MPSC adopts all of the Attorney General’s recommendations, the hike would be reduced to approximately 5%, saving ratepayers more than $40.4 million in additional costs.

In last week’s filed testimony, Attorney General Nessel identifies unreasonable capital expenditures and operations and maintenance expenses. The testimony further recommends removing millions in incentive compensation that only benefit corporate objectives with no direct benefit to customers and a reduction in the requested return on equity from 10.75% to 9.8%. 

SEMCO sells natural gas to approximately 300,000 customers throughout Michigan.