Natural Gas Charges

Consumers Energy’s typical residential customer uses about 93 thousand cubic feet (Mcf) of natural gas each year. About 80 percent of that gas is used for heating. Individual bills will vary depending on the weather and energy use habits.

How natural gas gets to your home 
Natural gas operations statistics

Typically there are three charges for natural gas on a Consumers Energy residential customer bill.

  • Gas Cost Recovery covers the cost of the natural gas per Mcf.  This charge (see table below) may change each month to reflect market conditions. Under state law, Consumers Energy can't make any profit on the natural gas, so it charges customers only what it pays for the gas.  The utility buys most of the gas customers will need in the upcoming winter during the summer when prices are generally lower and stores it in underground storage fields.
  • Distribution Charge includes recovery of operations and maintenance expenses (i.e. maintaining pipelines, new pipelines, storage well reliability, etc.). The monthly charge, which varies by rate class, is about $2.50 per Mcf for most residential customers.
  • Customer Charge includes recovery of customer-related activities (i.e. meter costs, customer accounting, customer billing, etc.).  The fixed charge is $10.50 per month.

The following is an 18-month review of the Gas Cost Recovery charges, including our current month price per Mcf.

 

 

Month/Year

Price per Mcf
Gas Cost Recovery

November 2014 $5.1753
October 2014 $5.1413
September 2014 $5.1605
August 2014 $5.3789
July 2014 $5.5436
June 2014 $5.5966
May 2014 $5.4526
April 2014 $4.7473
March 2014 $4.7098
February 2014 $4.6260
January 2014 $4.6260
December 2013 $4.5473
November 2013 $4.5864
October 2013 $4.6260
September 2013 $4.5833
August 2013 $4.6260
July 2013 $4.7098
June 2013 $4.7937