For Release: 03/28/2007

Michigan Gas Utilities Files with Michigan Public Service Commission to Adjust Natural Gas Costs

Monroe, MI. – As a result of changing natural gas prices, Michigan Gas Utilities (MGU) is planning to implement a gas cost recovery (GCR) factor increase of 16% on April 1, 2007, President Gary Erickson said today.

MGU filed its plan with the Michigan Public Service Commission pertaining to projected GCR charges. In addition, the plan accounts for securing future natural gas supplies for its customers for the period of April 1, 2007 through March 31, 2008.

“We use a balanced approach in purchasing natural gas to help protect our customers from higher wholesale prices. This portfolio approach helps shield our customers from market gas price volatility,” Erickson mentioned.

MGU’s current cost per CCF (one CCF equals 100 cubic feet of natural gas) is $.76500. In MGU’s GCR Plan filed in December of 2006 with the Michigan Public Service Commission, the gas utility filed a proposed ceiling GCR factor of $.90300 per CCF. However, based on current market projections, MGU is choosing to implement a lower factor of $.88163 per CCF beginning the first billing cycle in April.

“We would rather set the GCR at this level now with mild temperatures in the forecast. Naturally, we hope we can lower that factor throughout the year, yet that will depend on the market to make that determination. In April of last year, the GCR was $.93196/CCF, 5% higher than what we are proposing now, perhaps that helps put this in perspective,” Erickson added.

Michigan Gas Utilities serves more than 165,000 customers with natural gas across the state of Michigan. The company’s headquarters is located in Monroe.

For More Information, Contact: