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U.S. PIRG Consumer Blog
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May 13, 2009
Michigan: Victory for utility consumers
The Michigan Supreme Court has ruled for consumers in a case between PIRG in Michigan (PIRGIM news release) and the Detroit Edison Company. The court's decision rejected the power monopolist's request for a $65 annual million rate increase over 40 years, ultimately saving Michiganders $2.6 Billion in foregone increased rates. The Michigan Environmental Council and the Attorney General fought the case as co-appellants alongside PIRGIM. “This decision is an important win for Michigan ratepayers,” said Kara Rumsey, Public Interest Advocate for the Public Interest Research Group in Michigan (PIRGIM). “Detroit Edison cannot be allowed to pass hundreds of millions of dollars in unreasonable and unjustified costs on to consumers. At a time when many Michiganders are struggling to pay their bills, utility companies must be held to their responsibility to provide electric and gas service at reasonable rates.” Basically, the firm wanted consumers to pay for its $893 million overpayment for its wrongheaded acquisition of its parent company, which occurred a few years ago during the also wrongheaded utility deregulation frenzy led by Enron and others. We'll be paying the price for that debacle for years, but at least the people of Michigan will be paying less.
Posted by Ed Mierzwinski at May 13, 2009 03:28 PM
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