Michigan regulators OK city utility bill surcharges for Dowagiac, Niles and others

Associated Press Report

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By WSBT 24/7 News

Story Created: Jul 2, 2009 at 1:47 AM EST

Story Updated: Jul 2, 2009 at 11:16 AM EST

LANSING, Mich. (AP) — Michigan regulators have approved adding new fees to monthly bills for customers of 40 municipal utilities in the state — including Dowagiac, Niles and Sturgis.

The surcharges will help the utilities meet energy-efficiency requirements under a 2008 state law.

The "energy optimization" fees range from a low of 13 cents a month in Marshall to a high of $1.26 per month in Coldwater.

Some city-owned utilities also are allowed to charge up to $3 a month to buy more wind power and other forms of alternative energy. But many of the municipal utilities will not have the $3 “renewable energy plan” surcharge.

The Michigan Public Service Commission authorized the fees Wednesday. The fees already have been approved for bigger utility companies such as Detroit-based DTE and Jackson-based Consumers Energy.

The municipal electric companies have 90 days to implement the REP surcharge and are directed to implement the EO surcharge as soon as possible.

Coldwater … monthly energy optimization surcharge for residential customers is $1.26. There is no renewable energy plan surcharge.

Dowagiac … monthly energy optimization surcharge for residential customers is 50 cents. The renewable energy plan surcharge has not been set, but will not exceed the $3 cap.

Niles … monthly energy optimization surcharge for residential customers is 54 cents. The renewable energy plan surcharge has not been set, but will not exceed the $3 cap.

Paw Paw … monthly energy optimization surcharge for residential customers is 60 cents. The renewable energy plan surcharge has not been set, but will not exceed the $3 cap.

Sturgis … monthly energy optimization surcharge for residential customers is 56 cents. The renewable energy plan surcharge has not been set, but will not exceed the $3 cap.

SBT24/7News contributed to this story.

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