Mich. Attorney General Announces Propane Suit Settlement

LANSING (AP) - Michigan's attorney general says his office has reached a more than $500,000 settlement with a propane supplier over high prices last winter.

Bill Schuette told reporters Wednesday that the deal with AmeriGas affects about 5,600 customers.

Current customers will receive credits to their accounts. Former customers will get refunds.

The state filed a lawsuit claiming violations of the Michigan Consumer Protection Act by AmeriGas alleging price-gouging last winter.

AmeriGas told The AP in September that it was cooperating with Schuette's investigation and wanted to resolve the situation.

Problems that created the shortfall included heavy demand caused by the cold weather and a late harvest that required propane for drying grain. There were also transportation issues caused by icy roads, heavy snowfall, rail line problems and pipeline maintenance.