Village Of Hillman Responds To Administrative Judge Ruling
Fri, 02 May 2008 15:02:36
The Village Of Hillman has responded to a Michigan Public Service Commission (MPSC) administrative judge ruling concerning an ongoing dispute over natural gas rates with Presque Isle Electric and Gas (PIE&G).

The proposal for decision was issued April 23rd in which village officials declined comment until it could be reviewed, but now say they are "encouraged".

Village officials support a recommendation to reject the utilities proposed TIER ratemaking mechanism - the judge concluding that the proposal was not "reasonable and prudent" - and support a recommendation the MPSC not serve as a "referee" in resolving the rate dispute.

The village also supports the determination that PIE&G's proposed rate making "mechanism" does not allow negotiations or review of rates and as such rejected the utilities attempt to be self-regulating... supporting the village position that rate negotiation is required.

The utility sued the Village who feels that action was a suit brought against the utilities own members and the village was compelled to participate in MPSC proceedings to determine rates. The Village has appealed and that case is on appeal.

Village President Myron L. McIntire saying of the proposed decision... "The Village has a vital role to play in negotiating fair and reasonable rates. PIE&G must be accountable to its customers. It would be a dereliction of duty for the Village Council to simply go along with whatever rates PIE&G proposes. While other communities chose to give up their rights in recent agreements with PIE&G, the Village Council will continue to protect its residents and local businesses by negotiating reasonable rates."

As previously reported, the proposal for decision is not a final decision, and the village plans to file exceptions pointing out areas where the Village disagrees with the Administrative Law Judge. All parties have the opportunity to file exceptions by May 28th. Eventually the full MPSC board will make a final ruling.


   

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