First delivery rate case since 2003
CHICAGO, May 19 /PRNewswire-FirstCall/ -- Integrys Energy Group, Inc. (NYSE:TEG) announced today that its subsidiary, Michigan Gas Utilities Corporation, has filed a rate case with the Michigan Public Service Commission, the first delivery rate increase request since 2003. Michigan Gas Utilities applied for an overall increase of 5.8 percent in retail natural gas delivery rates, which, if approved as requested, would result in a monthly increase of about $6 for the typical residential customer using 92 thousand cubic feet annually.
Additionally, Michigan Gas Utilities is asking for a 4.4 percent interim rate increase, subject to refund, while the Michigan Public Service Commission considers the request.
Michigan Gas Utilities' rate case filing includes an increase in its base rates of $13.9 million in annual revenue, a rate base of $204 million, a return on common equity of 11.25 percent, and an equity component of 50.01 percent.
In March 2003, Michigan Gas Utilities was granted 44.89 percent regulatory equity and an 11.4 percent allowed return on common equity. Michigan Gas Utilities' return on equity for the year ended December 31, 2007, was 4.97 percent.
"Due to inflation, our costs have risen over the past five years, so we need this increase to recover those increased costs," said Michigan Gas Utilities President Gary Erickson. "Natural gas commodity prices continue to be volatile and current indications are that prices could be higher next winter. Michigan Gas Utilities does not profit from the price of the natural gas commodity. We simply pass the cost of the natural gas commodity through to our customers, under the oversight of the Michigan Public Service Commission." Forward-Looking Statements This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. You can identify these statements by the fact that they do not relate strictly to historical or current facts and often include words such as "anticipate," "expect," "intend," and other similar words. Forward-looking statements are beyond the ability of Integrys Energy Group to control and, in many cases, Integrys Energy Group cannot predict what factors would cause actual results to differ materially from those indicated by forward-looking statements. Please see Integrys Energy Group's periodic reports filed with the Securities and Exchange Commission (including its 10-K and 10-Qs) for a listing of certain factors that could cause actual results to differ materially from those contained in forward-looking statements.
About Integrys Energy Group, Inc.
Integrys Energy Group, Inc. (NYSE:TEG), headquartered in Chicago, Illinois, is a holding company for energy related subsidiaries, which includes regulated utilities and nonregulated subsidiaries.
The six regulated utilities consist of:
-- The Peoples Gas Light and Coke Company, a natural gas utility serving
approximately 830,000 customers in the City of Chicago. -- Wisconsin Public Service Corporation, an electric and natural gas
utility serving approximately 433,000 electric customers and 314,000
natural gas customers in northeastern Wisconsin and an adjacent
portion of Michigan's Upper Peninsula. -- Minnesota Energy Resources Corporation, a natural gas utility serving
approximately 207,000 customers throughout Minnesota. -- Michigan Gas Utilities Corporation, a natural gas utility serving
approximately 165,000 customers in lower Michigan. -- North Shore Gas Company, a natural gas utility serving approximately
158,000 customers in the northern suburbs of Chicago. -- Upper Peninsula Power Company, an electric utility serving
approximately 52,000 customers in Michigan's Upper Peninsula. The company's principal nonregulated subsidiary is:
-- Integrys Energy Services, Inc., a diversified nonregulated energy
supply and services company serving residential, commercial,
industrial, and wholesale customers in developed competitive markets
in the United States and Canada. More information about Integrys Energy Group, Inc. is available online at http://www.integrysgroup.com/. DATASOURCE: Integrys Energy Group, Inc.
CONTACT: Steven P. Eschbach, CFA, Vice President -- Investor Relations of Integrys Energy Group, Inc., +1-312-228-5408 Web site: http://www.integrysgroup.com/
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