Governor Signs Emergency Rules to Help with Heating Costs (MP3 - 2:31 min. / 3.46MB)

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Just as we put on extra layers for warmth in the winter, my administration is continuing to fight for extra layers of security for our seniors, our working families, and our most vulnerable citizens during a season that will see much higher energy costs. Effective November 1, emergency rules go into effect to protect consumers who can least afford increases in their home heating bills this winter. The expected increase in energy costs stems from hurricanes in the gulf, short supply around the nation, and increasing demand around the world.

In September, I – along with several of my fellow governors – called on President Bush to act decisively in preventing oil companies from raking in profits at the expense of American consumers during a time of crisis. We urged the President to move swiftly to cap corporate oil profits and strictly prosecute any violation of federal anti-trust laws, and take all other possible actions to protect Americans against profiteering. Unfortunately, the administration took no such action and the American people are paying the price. To say I’m outraged at learning of the record profits reported by the major oil companies on the heels of Hurricane Katrina is putting it only mildly.

ExxonMobil, the world's largest oil company, reported that their third quarter profits grew 75 percent to almost $10 billion. Similarly, British Petroleum and ConocoPhillips, the world's second and third largest oil companies, respectively, reported record profits: British Petroleum reported that its quarterly profits grew 34 percent to more than $6.5 billion, and ConocoPhillips reported its quarterly profits grew 89 percent to $3.8 billion. In 2004 alone, the five largest oil companies together made more than $80 billion in profits - about $800 for every household in America.

The emergency rules call for the following changes:

• lengthening the time between the date utility service bills are sent to customers and the due date, making sure people have more time to put a check in the mail;

• preventing utilities from shutting off service or charging late payment fees for failure to pay an estimated bill by the due date;

• prohibiting utilities from blocking services to seniors or those on fixed incomes to make sure vulnerable citizens aren’t put at further risk.

The rules take effect November 1 and continue through March 31, 2006 for retail customers of electric and gas utilities subject to the Commission’s jurisdiction.

In addition to the new rules, I put the state’s natural gas suppliers on notice that MPSC will be watching their operations closely to ensure customers are receiving rates that are as low as possible this winter, and I led a bi-partisan group of 28 governors to ask Congress to fund a significant increase in Low Income Home Energy Assistance Program (LIHEAP) funding.

The Governor’s weekly radio address is released each Friday at 10:00 a.m. and may be heard on broadcast stations across that state through an affiliation with the Michigan Association of Broadcasters. The address will also be available on the Governor’s Website on Mondays as a podcast for general distribution to personal MP3 players and home computers.