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August 01, 2015 11:02 PM ET

Gas Utilities

Company Overview of Michigan Gas Utilities Corporation

Company Overview

Michigan Gas Utilities Corporation supplies natural gas to customers in southern and western Michigan. It serves homes and businesses in and around Grand Haven, Otsego, Benton Harbor, Coldwater, and Monroe. Michigan Gas Utilities Corporation was formerly known as Aquila Michigan and changed its name to Michigan Gas Utilities Corporation in April 2006. The company was incorporated in 1859 and is based in Monroe, Michigan. As of April 3, 2006, Michigan Gas Utilities Corporation operates as a subsidiary of Integrys Energy Group, Inc.

899 South Telegraph Road

Monroe, MI 48161

United States

Founded in 1859





Key Executives for Michigan Gas Utilities Corporation

President of Integrys Energy Group and Chief Operating Officer of Utilities - Integrys Energy Group
Age: 53
Vice President and General Manager
Compensation as of Fiscal Year 2015.

Michigan Gas Utilities Corporation Key Developments

Michigan Public Service Commission Issues Order in the Matter of the Application of Michigan Gas Utilities Corporation

Michigan Public Service Commission issued order in the matter of the application of Michigan Gas Utilities Corporation. On March 11, 2015, Michigan Gas Utilities Corporation (MGUC) filed its application, with supporting testimony and exhibits, requesting authority to reconcile its energy optimization (EO) plan revenues and costs for the 12-month period ended December 31, 2014. MGUC also requested approval of revised EO surcharges. On June 17, 2015, a prehearing conference was held before Administrative Law Judge Suzanne D. Sonneborn. The Commission Staff and MGUC participated in the proceedings. Subsequently, the parties submitted a settlement agreement resolving all issues in the case. According to the terms of the settlement agreement the parties agreed that the payment of $2,491,144 to the independent energy optimization program administrator satisfied the requirements of MCL 460.1091 and that the proposed reconciliation of 2014 EO revenues and costs should be approved. The parties further agreed that the net overrecovery of $155,581, including interest through December 31, 2014, and the prior period rolled-in underrecovery for 2013, should be reflected as the beginning balance for MGUC's 2015 EO plan reconciliation. Finally, the parties agree that the EO surcharges shown in Attachment 1 to the settlement agreement should be approved for bills rendered on and after August 1, 2015 through December 31, 2016.

Michigan Gas Utilities Announces Executive Promotions

Michigan Gas Utilities has promoted Ron Herr to vice president and general manager. Mr. Herr will assume the duties of Chuck Hauska who is retiring in March 2014. Herr joined the company in 1977 as an Operations Trainee and progressed to Manager of Operations Staff and then Southern Division Operations Manager. Along the way to becoming Director of Business Operations in 2002, Ron also held the positions of vice president Marketing and Customer Service and Director of Quality Assurance. He is based in the Monroe office. the company also promoted Nicholas Krzeminski to the position of Manager-External Affairs. Krzeminski replaces P. J. Livernois who recently retired from the company. Krzeminski joined the company in November 2000 as a Purchasing Supervisor. Krzeminski has held supervisory positions in operations and his most recent position was Customer Relations Manager for east Michigan. His experience in customer relations as well as his extensive community involvement will contribute to his success in his new role.

The Michigan Public Service Commission Approves Settlement Agreement Authorizing Michigan Gas Utilities Corporation to Increase Natural Gas Rates

The Michigan Public Service Commission approved a settlement agreement authorizing Michigan Gas Utilities Corporation to increase its natural gas rates by $4,499,999, effective January 1, 2014. Residential customers using 100 ccf of natural gas a month will see an increase of 96 cents on their monthly bill. Michigan Gas Utilities Corporation on June 7 filed an application requesting a $8,036,820 rate increase. The final amount approved ($4,499,999) is 44% below what the utility requested and represents an increase of 3.5% over the rates set in its last natural gas rate case (case no. U-15990). Under the terms of the settlement, the rate increase reflects an authorized return on common equity of 10.25%, resulting in an overall rate of return of 6.1484%. The uncollectible expense tracking mechanism terminates with the close of business of the December billing month. The existing revenue decoupling mechanism (RDM) terminates on Dec. 31, and a new RDM will be implemented on Jan. 1, 2015. The utility will make capital expenditures that will reduce its overall system risk. This includes replacing the remaining 35 miles of bare steel main at a rate of at least four miles per year, beginning 2013, until all of the utility's bare steel main is replaced. The utility and the MPSC staff participated in the settlement.

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