September 12, 2005

Detroit Thermal gets rate hike for steam system

State regulators have approved new rates for Detroit's steam-system company, but it is not likely to end disagreement between Detroit Thermal and some of its customers, such as Wayne State University, which has considered the possibility of leaving the steam supply and building its own boiler plants. "This rate situation could make it even more important for us to leave," said John Davis, CFO and vice president for finance and facilities management." He said he had not seen the decision by the state Public Service Commission, but his initial impression is that it could have "a significant impact on our costs, in times of budget constraint, which is not good for us."

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