October 28, 2005

Renewed Call for Cap on Oil, Gas Company Profits

LANSING – In her weekly radio address, Governor Jennifer M. Granholm today announced she has signed emergency rules designed to protect consumers who least can afford the expected increases in home heating bills this winter.  The Governor’s action to protect Michigan consumers came just one day after the major oil companies announced record-breaking profits while the nation was reeling from the effects of Hurricane Katrina.
 
“Just as we put on those extra layers for warmth in the winter, my administration will continue 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,” Granholm said in her address.
 
The increase in energy costs stem from hurricanes in the gulf, short supply around the nation and increasing demand around the world, all of which can have a devastating impact here at home.  The emergency rules will protect consumers who least can afford these sharp spikes in heating and energy costs.
 
In addition to comments made in her radio address, the Governor today said she is outraged over the record profits reported by the major oil companies this week. 
 
“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,” Granholm said today.  “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.” 
 
Yesterday, ExxonMobil, the world's largest oil company, reported third quarter profits grew 75 percent to almost $10 billion.  Similarly, British Petroleum and ConocoPhillips, the world's second and third largest oil companies, reported record profits: British Petroleum reported 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. 

Granholm noted that the rules she signed today, originally proposed by the Michigan Public Service Commission (MPSC), will take effect next Tuesday, November 1 and continue through March 31, 2006 for retail customers of electric and gas utilities subject to the Commission’s jurisdiction.
 
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.

In addition to the new rules, Granholm has 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 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.

Broadcasters Note: Governor Granholm’s radio address can be accessed through Sunday evening exclusively through the Members Only page of the Michigan association of Broadcasters website. 

Publishers Note: The text of today’s address is attached.