Page 2 - The Michigan Daily - Wednesday, February 5, 1986
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Natural gas
customers
overpay,
group says
LANSING, Mich. (UPI) - Michigan's
three largest gas companies con-
sistently overcharge homeowners in
the winter months when customers
use the most natural gas, the
Residential Ratepayer Consortium
said yesterday.
The accusation against Consumer
Power Co., Michigan Consolidated
Gas Co. and Michigan Gas Utilities
was contained in a study the consor-
tium presented to the Michigan
Public Service Commission for its
review.
ANNOUNCEMENT of the report
comes a day after Michigan Con-
solidated filed a request with the PSC
seeking permission to give customers
a $55.7 million credit this winter.
That amounts to a $30 savings for a
typical residential customer using
15,000 cubic feet of gas a year,
Michigan Consolidated officials said
Monday.
The Residential Ratepayer Consor-
tium is a public watchdog
organization that monitors the ac-
tivities of tutilities Michigan.
THE STUDY by the consortium in-
dicated that the three gas companies
overcharged their customers nearly
$130 million in the first three months
of 1983 through 1986.
The study was conducted by natural
gas industry expert Donald Bateman
of Donald Bateman & Associates in
LaSalle, Mich.
Bateman said the overcharges
stem primarily from the utilities
ability to bill customers during the
early months of the year at rates
which have not yet been reviewed or
approved by the PSC.
"MichCon, Consumers Power and
MGU know in advance that the com-
mission will be unable to enter a rate
order prior to the start of each year's
heating season," Bateman said. "The
gas companies thus have an assuran-
ce that winter period over-collections
are literally infinite and at their un-
fettered discretion."
........... ............... .................................
Committee recommends dorm rate increase
By EVE BECKER flation, utility rate increases, and however, said Foulke. The University committee's report
The cost of living in residence halls
may increase by 5.25 percent next
year, if a recommendation from a
student and staff housing rate studies
committee is accepted.
"Basically, it's an inflation driven
increase," ;said David Foulke,
associate director for residence
operaitons. The committee's recom-
mendation was based on the rate of in-
Committe
stalls on
smoking
legislation
higher food service costs. Foulke said
the University expects electric rates
along to rise 19 percent next year.
THE recommendation has been
passed to Robert Hughes, the director
of housing, and to Henry Johnson,
vice president in charge of student
services. It will face the executive of-
ficers before being presented to the
regents at their Februrary meeting.
The rate of the increase is not final,
(Continued from Page i)
COMMITTEE members challenged
the report when Niehaus said he
didn't see any reason to report on the
money that would be saved by the bill.
The legislators also speculated on
the tobacco industry's timing in
releasing the report the day before a
decision was to be made.
"They did it for an obvious reason
because it wouldn't be subject to
review and criticism by knowledgable
professionals," said Kenneth Warner,
Chairman of the Department of
Health Planning and Administration
at the University.
may lower the rate to keep it in line
with the national inflation rate of 4.28
percent," he said. "(But) five and
one-quarter (percent) seems a very
fair rate increase," Foulke said.
"On the other hand, we're concerned.
It's not a big increase, but it's not
small,' 'headded.
FAMILY housing rates may rise 5.4
percent next year, according to the
WARNER, WHO was asked to
testify at the meeting by the
American Lung Association, said he
could not subscribe to Niehaus' study
because it ignored a vast amount of
literature that shows the economic
benefits of the bill.
"It was very one-sided," Warner
said, adding that he would like to
discuss the subject with Niehaus,
whom he has never met.
The University administration is
currently considering its own
smoking in the workplace policy, af-
ter deciding not to wait for the state to
LSA junior James Jackson, one of
four students on the rate study com-
mittee, said the committee was recep-
tive to student input.
The rate increase is in line with
other increases in the past, sasid
Foulke. Last year there was a 4.7 per-
cent increase and Foulke said there
have been increases every year.
take action.
"THE UNIVERSITY should
proceed on its own," Warren said. "I
fear it'll be a long time before the
state passes this legislation.... You
might wait until the cows come
home," he added.
The Michigan Clean Indoor Air Act
will be discussed by the Public and
Mental Health Committee soon, said
committee member Sen. William
Sederburg (R-Ingham), who said he
too had expected Kelly to be at the
meeting.
"I asked him this morning and he
said he was going to be here," he ad-
ded.
KELLY COULD not be reached for
comment.
"He 's been getting a lot of pressure
from the tobacco industry and then
also from people in his district who
support the bill," said Jim Longmate,
legislative aide to Faxon.
Faxon, who has introduced the bill
four times, said that he isn't
discouraged by the setback. "The
public sentiment is overwhelmingly
in support of it," he said. For the op-
ponents "delay is victory, while for
me delay has been a source of in-
spiration," he added.
Although the bill is being held up in
the committee, it received endor-
sements last March from 20 senators,
including Kelly.
YOU'LL
' THE NEW
U))
IN BRIEF
COMPILED FROM ASSOCIATED PRESS AND
UNITED PRESS INTERNATIONAL REPORTS
Aquino rejects debate request,
wants 'Nightline' appearance
MANILA, Philippines - President Ferdinand Marcos yesterday issued
a surprise challenge to opposition candidate Corazon Aquino to debate
him in a nationwide broadcast during the final 36 hours of their cam-
paign.
But Aquino quickly rejected the challenge, offering instead to appear
live with Marcos on the ABC-TV program "Nightline," and to move the
broadcast up a day to avoid conflict with Philippine election laws.
Aquino proposed, but did not insist, that the program be broadcast
simultaneously on all Filipino radio and TV stations.
At the same time, however, she called it "a national disgrace" that the
Philippines should have to rely on a foreign network to provide a neutral
TV forum for political candidates.
"This is the price of years of Marcos censorship of the media," she said
in a statement relayed to reporters by telephone. There was no im-
mediate response from Marcos to the counter-offer.
Marcos had offered to appear with Aquino, who he never has met, shor-
tly after the head of the National Election Commission said that a
scheduled joint appearance on "Nightline" would be illegal.
NASA shifts focus of search
CAPE CANAVERAL, Fla. - NASA yesterday severely cut back a
search of the ocean surface that has yielded only one-tenth of
Challenger's wreckage, shifting its emphasis to the "relatively slow and
arduous search of the ocean bottom."
Chief objects of the search are the crew compartment, with its cockpit
voice recorder and electronics that monitor and record spacecraft
systems, and the right booster rocket that has emerged as the primary
suspect in the catastrophe.
Two National Aeronautics and Space Administration ships with sonar
and robot submarines that can see "hundreds of times better than the
human eye" continued scanning the bottom of the Atlantic Ocean 40 miles
offshore in water 1,100 feet deep.
"As of this point, no debris has been recovered from the underwater ef-
forts," the space agency said.
With any surface debris scattered ever wider by strong ocean currents,
the Navy pulled out its ships, leaving only four Coast Guard vessels, four
fixed wing planes and two helicopters. There had been 10 aircraft and 15
ships on Monday.
Arab groups threaten U.S.
TRIPOLI, Libya - Hard-line Arab groups threatened yesterday to
send suicide and commando squads on raids inside the United States if it
attacks Libya or any other Arab nation.
Israel sent up warplanes that intercepted an executive jet bound from
Tripoli to Syria shortly afterward, hoping to capture what the Israeli
military command called "people involved in planning attacks" on the.
Jewish state. The plane was forced down in Israel, but a source there said
none of the wanted men was aboard.
Libya's state radio announced the plane's capture less than an hour af-
ter the Libyan-sponsored group called Allied Leadership of the
Revolutionary Forces of the Arab Nation issued its threat of terrorist at-
tacks on the United States.
It said only that a Libyan aircraft was "captured over the
Mediterranean" and forced to land at an unknown airport. The Gulf-
stream II was forced down at an air force base in northern Israel and
released later along with the 12 people aboard.
Oil prices fall; market drops
NEW YORK - The stock market retreated from record highs yester-
day in the ninth-heaviest volume day in New York Stock Exchange
history.
After a day of volatile trading, the Dow Jones industrial average
finished with a modest loss of 1.04 points to 1593.23.
Broader market indicators also declined. The New York Stock Ex-
change index fell 0.57 to 122.72 and Standard & Poor's 500-stock index fell
1.17 to 212.79. The price of an average share fell 17 cents.
Investors gave the disinflationary impact of lower oil prices part of the
credit for pushing the market to new highs Monday and for an early boost
yesterday.
But the impact of cheapter crude oil on the ability of some oil revenue-
dependent nations to repay debts to American banks gave the market a
case of mid-afternoon jitters. Broad-based profit-taking ensued, pushing
the market back from its new highs.
Falling crude oil prices persisted as a market factor through the day.
Chrysler first to enter GOP
gubernatorial candidacy race
BRIGHTON, Mich. - Automobile customizing magnate Dick Chrysler,
a Republican, yesterday formally became the first man to enter the 1986
governor's race, comparing himself to a modern-day Horatio Alger.
Standing in a large auditorium at the headquarters of his Cars and Con-
cepts Inc., a firm he started a decade ago to the day, Chrysler lashed out
at Democratic Gov. James Blanchard's tax policies.
"The fact is, increasing taxes is the only thing Jim Blanchard knows,"
Chrysler said. "He gets elected, raises your taxes, buys votes with your
money, then he hopes that you'll forget, so he can get re-elected and raise
your taxes again."
Chrysler is the first of three Republicans expected to enter the race.
Later this month, Wayne County Executive William Lucas is scheduled to
formally become a candidate, followed by Oakland County Executive
Dan Murphy.
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Vol XCVI- No,89
The Michigan Daily (ISSN 0745-967 X) is published Monday through
Friday during the fall and winter terms. Subscription rates: September
through April-$18 in Ann Arbor; $35 outside the city. One term-$10 in
town; $20 outside the city.
The Michigan Daily is a member of The Associated Press and subscribes
to United Press International, Pacific News Service, Los Angeles Times
Aqir*
''7.1S;r 'y. '
s' '
i
Syndicate, and College Press Service.
Editor in Chief............ERIC MATTSON
Managing Editor ......... RACHEL GOTTLIEB
News Editor.............. JERRY MARKON
Features Editor............CHRISTY RIEDEL
NEWS STAFF: Eve Becker, Melissa Birks, Laura
Bischoff, Rebecca Blumenstein, Marc Carrel. Dov
Cohen. Laura Coughlin, Tim Daly, Nancy
Driscoll, RobEarle. Amy Goldstein, Susan Grant.
Stephen Gregory, Steve Herz, Linda Holler, Mary
Chris Jaklevic, Philip Levy, Michael Lustig, Amy
Mindell, Caroline Muller, Kery Murakami, Jill
Oserowsky, Joe Pigott, Kurt Serbus, Martha Sevet-
son, Cheryl Wistrom, Jackie Young.
Opinion Page Editor ............KAREN KLEIN
Associate Opinion Page Editor ... HENRY PARK
OPINION PAGE STAFF: Gayle Kirshenbaum,
Peter Ephross, David Lewis, Peter Mooney,
Susanne Skubik.
Arts Editor................HOBEY ECHLIN
Records....................BETH FERTIG
Books ................... REBECCA CHUNG
'ThI. ANPTIF lflt
Sports Editor................BARB McQUADE
Associate Sports Editors ...... DAVE ARETHA,
MARK BOROWSKY, RICK KAPLAN,
ADAM MARTIN, PHIL NUSSEL.
SPORTS STAFF: Emily Bridgham, Debbie
deFrances, Liam Flaherty, Jon Hartmann, Darren
Jasey, Christian Martin, Scott Miller, Greg
Molzon, Jerry Muth, Adam Ochlis, Duane Roose,
Jeff Rush, Adam Schefter, Scott Shaffer, Pete
Steinert, Douglas Volan.
Business Manager .......DAWN WILLACKER
Display Sales Manger...CYNTHIA NIXON
Assistant Sales Manager .. KATHLEEN O'BRIEN
Classified Manager...GAYLA BROCKMAN
Finance Manager ......... MIKE BAUGHMAN
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DISPLAY SALES: Lori Baron, Eda Banjakul,
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