A computer snafu is giving thousands of Michigan Consolidated Gas Co. customers bigger-than-expected increases on their monthly bills.
   Computers last spring didn't automatically reconcile actual use of gas with the estimate that sets the equal monthly billings paid by customers on the company's budget plan, MichCon spokeswoman Amy Messano told Booth News Service for a Thursday story.
   Those who used more gas than estimated last year are getting billed now for the underpayment. And because the mistake wasn't detected until recently, there are less than eight months left in the billing cycle to make up the difference.
   That billing is happening while a three-year rate cap expires, boosting bills by 31 percent. The freeze was an attempt to stabilize rates and lure new gas suppliers while the industry shifted to a competitive market.
   The combination of factors will more than double some bills, company officials and state regulators said.
   It is unclear to what extent people are affected in MichCon's territory, which includes Ann Arbor, Detroit, Grand Rapids and Muskegon. There are 188,000 people on the budget plan, and about half are getting billed for the additional increases, Messano said.
   "There's probably better than close to 40 percent (on the budget plan) who may have increases greater than 50 percent," said Michael Kidd, chief of the Michigan Public Service Commission's gas division.
   Customers who used less gas than estimated are credited for the difference. Many customers were unaffected because they paid the total amount due on their bills, which was unaffected by the glitch, instead of the part of the bill that listed the monthly charge, Messano said.
   In response to the problem, people who call the number on their bill can negotiate to spread the additional amount over a longer period, Messano said.

Detroit News

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