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February 09, 1979 - Image 2

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Publication:
The Michigan Daily, 1979-02-09

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Page 2-Friday, February 9, 1979-The Michigan Doily
ATTORNEY GENERAL QUESTIONS PROPOSED HIKE:
State disputes Edison rate plan

By MARY FARANSKI
The Detroit Edison Company in
December requested from the Mich-
igan Public Service Commission
(MPSC) a $221 million rate hike to be
spread over the next two years. Now
the company may spend as much as
half that time in court because Attorney
General Frank Kelley has intervened in
the request.
According to attorney Al Ernst, who
works in the Attorney General's office,
Detroit Edison customers "pay higher
rates nationally than most customers,
excluding the Eastern seaboard."
New Yorkers have the highest rates,
and businesses are leaving the area
because of high-bills. Kelley does not
want Detroit in the same situation, ac-
cording to Ernst.
ACCORDING TO a news release
from the Attorney General's office, the
proposed rate increase "would boost
the utility bill for a typical customer
(using 500 kilowatt hours of electricity
per month) by $2.98." It would raise the,
cost of electricity from approximately 5

cents to about 5% cents per kilowatt
hour.
Consumers Powej, which serves the
rest of the lower peninsula; charges just
under 4 cents per kilowatt hour.
Detroit Edison serves metropolitan
Detroit and the Thumb area, extending
as far west as Ann Arbor and as far
south as the Ohio border. While
covering about 13 per cent of
Michigan's land area, it serves about
one-half of Michigan's population and
energy consumption.
PUBLIC HEARINGS onthe rate in-
crease will begin Feb. 13 at Detroit's
City-County Building. The MPSC will
preside over another set of hearings in
Lansing, which are scheduled to begin
Feb. 20. At these hearings, Edison will
present evidence. and have witnesses
testify as to the necessity of the rate in-
crease. Then Kelley and other opponen-
ts of the rate hike will present their side
to the MPSC. Those hearings could last
as long as a year, according to Hugh
Anderson, who will represent Kelley in
the case.
Anderson said that Edison has for

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several years requested new increases
two months after their previous request
was approved, although approval was
usually granted for only a fraction of
the original request. Three months ago,
the MPSC granted Edisoi an $87
million increase.
Fred Sullivan of Detroit Edison said
his company can only ask for $166
million under President Carter's wage
and price guidelines, but if the
guidelines expire, Edison wants the
whole $221 million.
EDISON CLAIMS it needs the extra
income to cover the rising cost of
operation maintenance, to increase the
rate of return on its common equity
stock, and to finance several construc-
tion projects near Port Huron.
One project under construciton
called Greenwood 1, is an oil-generated
plant. "We've contended for several
years now that the plant should not
operate because oil is not an economical
source of energy," said Anderson. Oil
prices have quadrupled since con-
struction began.
Greenwoods 2 and 3 will be nuclear
generating plants, which Anderson also
said he sees as unnecessary.
Daily Official
Bulletin
Friday, February 9, 1979
Daily Calendar
Guild House: Soup and Sandwich, 75 luncheon,
Brother David Steindl-Rast, Benedictine Monk,
"Buddhism, Hinduism and Christianity," 802
Monroe, noon; Art and Music in a Westerd
Monastery, Canterbury Loft, 332S. State, 8p.m.
Ctr. Western Europen Studies: Samuel Barnes;
"Personal Satisfaction and Political Protest in Con
temporary Western Democracies," Conf. Rm
League, noon.
Ctr. South/Southeast Asian Studies: Linda Lim,
"The New Export Economy: Industrial Free Trade
Zones in East and Southeast Asia," Commons Rm.,
Lane, noon.
Physics/Astronomy: B. Savit, "Duality in Field
Theory and Statistical Systems," 2038 Randall, 2
p.m.
Humanities/College of Engineering: Howard P.
Segal, "Technological Utopianism Within American
Cultre," 1047 E. Eng., 3 p.m.
Environmental Science & Technology: Ben van
Vliet, "The Use of Synthetic Polymeric Absorbent
for Trace Organic Removal in Aqueous Phase," 185
Eng., IA, 3:30 p.m.
Psychology: Oscar Barbarin, "Community
Psychology: Returning to Basics," 447 Mason Hall, 4
p.m.
SUMMER PLACEMENT
3200 SAB-763-4117
Announcements:
U.S/ Dept. Labor, Washington. Summer Intern
Program for juniors/senior, and up. Required
majors, ind. hygiene/envirohimental health
chemistry, biology, economics., Further details
available.
Defense Logistics Agency, Cleveland, Ohio. Aci
countant, Financial Analyst, Computer Specialist
and Ind. Engr. positions open in Cleveland, Grand
Rapids, Detroit. Further details available.
U.S. Dept. of Agriculture, Ill. Summer Intern
Program in Minnesota for Engr. Technician GS-5
Further details available.
Commodity Futures Trading Commission,
Washington, D.C. Opening for Management Analyst
or Program Analyst GS-5 or 7. Further details
available.
U.S. Dept. Interior, Fish & Wildlife Div.,
Washington, D.C. Opening in field of Biological
Science (Environmental Education). Further details
available.
U.S. Dept. Agri. Food & Nutrition Service,
Washington, D.C. GS-9. Statistician opening. Further
details available.
Office of Personnel Management, Washington,
D.C. GS-7 position. Students in economics, publi
adriin., or law. Further details available. Also, fields
of human resource development or education
technology.

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FLOWERS

Ann Arbor
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769=-250

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University of Michigan Alumnus

THE MICHIGAN DAILY
Volume LXXXIX, No. 109
Friday, February 9, 1979
is edited and managed by students at the University
of Michigan. News phone 764-0562. Second class
postage is paid at Ann Arbor, Michigan 48109.
Published daily Tuesday through Sunday morning
during the University year at 420 Maynard Street'
Ann Arbor, Michigan 48109. Subscription rates: $12
September through April (2 semesters); $13 by mail
outside Ann Arbor.
Summer session published Tuesday through
Saturday morning. Subscription rates: $6.50 in Ann
Arbor; $7.00 by mail outside Ann Arbor.

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