S T A T E O F M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * *
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1 S T A T E O F M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * * In the matter of the proposed rate increase filed by ) MICHIGAN MOVERS ASSOCIATION. ) Case No. T-1849 ) At the December 12, 2006 meeting of the Michigan Public Service Commission in Lansing, Michigan. PRESENT: Hon. J. Peter Lark, Chairman Hon. Laura Chappelle, Hon. Monica Martinez, OPINION AND ORDER On September 29, 2006, the Michigan Movers Association (MMA) filed an application for a general rate increase of 9% for Tariff MPSC MMW 4000 (Tariff 4000) with an effective date of November 24, Justification for the proposed increase was submitted September 29, On November 13, 2006, following a review of the MMA s filings, the Commission issued a suspension order and notice of hearing in order to investigate whether the proposed rate increase would result in just and reasonable rates. Administrative Law Judge Barbara A. Stump conducted a pre-hearing conference on November 28, The MMA and the Commission Staff (Staff) participated in the proceedings. Subsequently, the parties submitted a settlement agreement resolving all issues in the case. According to the settlement agreement, attached as Exhibit A, the MMA should be authorized to increase rates charged under Tariff 4000 by 4.5%. The MMA and the Staff state that this increase is necessary to cover increased labor and non-labor expenses.
2 The Commission FINDS that: a. Jurisdiction is pursuant to 1933 PA 254, as amended, MCL et seq.; 1939 PA 3, as amended, MCL et seq.; 1969 PA 306, as amended, MCL et seq.; and the Commission s Rules of Practice and Procedure, as amended, 1999 AC, R et seq. b. The settlement agreement is reasonable and in the public interest, and should be approved. c. The 4.5% general rate increase for Tariff 4000 should become effective upon one day s notice following issuance of this order. THEREFORE, IT IS ORDERED that: A. The settlement agreement, attached as Exhibit A, is approved. B. The rates for service rendered by the Michigan Movers Association members pursuant to Tariff MPSC MMA 4000 shall be increased by 4.5% upon one day s notice following issuance of this order. The Commission reserves jurisdiction and may issue further orders as necessary. Page 2 T-1849
3 Any party desiring to appeal this order must do so in the appropriate court within 30 days after issuance and notice of this order, pursuant to MCL MICHIGAN PUBLIC SERVICE COMMISSION ( S E A L) /s/ J. Peter Lark Chairman /s/ Laura Chappelle By its action of December 12, /s/ Monica Martinez /s/ Mary Jo Kunkle Its Executive Secretary Page 3 T-1849
4 Any party desiring to appeal this order must do so in the appropriate court within 30 days after issuance and notice of this order, pursuant to MCL MICHIGAN PUBLIC SERVICE COMMISSION Chairman By its action of December 12, Its Executive Secretary Page 4 T-1849
5 EXHIBIT A STATE OF MICHIGAN BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION In the matter of: MICHIGAN MOVERS ASSOCIATION Case No. T-1849 SETTLEMENT AGREEMENT On September 29,2006, the Michigan Movers Association (MMA) filed revisions to Tariff MPSC MMW 4000 that incorporated a proposed 9% general rate increase, effective November 13,2006. A statement of justification for the proposed increase was submitted at the time the tariff sheets were filed. The Commission Staff (Staff) reviewed the justification and, subsequently, the MMA and the Staff engaged in settlement negotiations, there being no other parties to the case. As a result of the negotiations, the parties agree as follows: 1. The MMA should be granted a 4.50% increase to the rates in Tariff MPSC MMW 4000 to cover increased labor and non-labor expenses. 2. The 4.50% increase does not include revenue enhancement for the carriers. 3. The 4.50% increase should become effective upon one (1) day's notice following a Commission order approving this Settlement Agreement but not sooner than December 8, If any part of the Settlement Agreement is not approved, the entire agreement is withdrawn and shall have no force or effect whatsoever. 5. Section 81 of the Michigan Administrative Procedures Act is herebywaived, so no Proposal for Decision by the Administrative Law Judge is needed.
6 6. The parties agree this Settlement Agreement resolves all issues in this case, and the Staff certifies the 4.50% rate increase is just and reasonable, and consistent with the public interest. 7. The MMA agrees to file an amendment to its existing fuel surcharge by January 1,2007 which provides that the fuel surcharge on household goods shipments of 40 miles or less will be that specified in the fuel surcharge or Fifty Dollars ($50.00), whichever is the lower charge. 8. The MMA agrees not to submit another proposed general rate increase to MMW 4000 which bears an effective date before January 1, If the Settlement Agreement is approved without change, MMA waives its rights to appeal the Commission's order in this case. MICHIGAN MOVERS ASSOCIATION MICHIGAN PUBLIC SERVICE COMMISSION STAFF - w c hmf. /a* Robert E. McFarland Emmanuel d. Odunlami Foster, Swift, Collins & Smith, P.C. Assistant Attorney General Attorney for MMA Attorney for MPSC Staff Northwestern Hwy., Ste Mercantile Way, Suite 15 Farrnington Hills, MI Lansing, MI Telephone: (248) Telephone: (517)
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