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After state Public Service Commission staff slashed its initial request for a $121.9 million rate increase, Michigan Consolidated Gas Co. has regrouped.
The Detroit-based natural-gas utility will submit briefs today at the PSC that revise its initial rate request. The PSC is expected to issue a final ruling this fall in the case, which will establish new MichCon rates beginning in January.
The briefs will take into account lower retiree health-care costs for MichCon and the postponement of two natural-gas pipelines that MichCon had planned to build. The natural-gas distribution, transmission and storage company is a subsidiary of MCN Corp., which has its annual meeting Thursday.
Lee Dow, MichCon vice president of rates and regulatory affairs, said the company is optimistic it will be able to demonstrate the need for rates higher than the $7.1 million increase proposed earlier this year by PSC staff. The increase would cover MichCon's 1994 costs, he said.
MCN expects 1993 earnings to rebound later this year from lower first-quarter results in utility and non-utility operations. Total first-quarter...