How Natural Gas Rates Are Set

Discover how Consumers Energy sets their natural gas rates, the charges you find on your bill, and our efforts to keep energy costs low.

Residential Natural Gas Charges


Your natural gas bill includes three main charges. Below is a description of each:

  • Gas Cost Recovery:The cost of the natural gas itself. This is measured in thousand cubic feet (Mcf). This cost includes only what we pay for the natural gas. We also help reduce the price you pay by purchasing most of the natural gas you need during the summer. Summer is when prices are low and we store it underground until you need it.
  • Distribution: These charges include operation and maintenance expenses for pipelines as well as storage of natural gas.
  • Customer:These charges include billing and metering which are necessary to serve our customers. This is a fixed charge that is assessed every month.

The current price that we pay for natural gas and pass along without a markup is below. You can also see an 18-month review of the Gas Cost Recovery charges.

Gas Cost Recovery Charges


  Price/Mcf - Gas Cost Recovery
January 2026 $3.3590
December 2025 $3.2656
November 2025 $3.1671
October 2025 $3.1355
September 2025 $3.2031
August 2025 $3.3525
July 2025 $3.5053
June 2025 $3.6594
May 2025 $3.8437
April 2025 $4.2233
March 2025 $2.3828
February 2025 $2.5135
January 2025 $2.5276
December 2024 $2.4803
November 2024 $2.6467
October 2024 $2.5264
September 2024 $2.5408
August 2024 $2.6603
July 2024 $2.8017
June 2024 $2.7106

Michigan Energy Rates


We work to provide reliable, safe and economical energy. As a result of this, we offer a variety of rate options to serve your unique needs. The electric and natural gas services we deliver are regulated by the Michigan Public Service Commission (MPSC).

Working Together to Keep Costs Down


Our Cost Controlling Efforts

We strive to provide you with the best product at the best price. We are always looking for ways to reduce your costs by:

  • Buying natural gas during the summer. This is when it usually costs less, and we'll store it in our underground fields throughout Michigan.
  • Recycling and minimizing waste to help reduce hazardous waste shipments and lower electric generation costs.
  • Providing recycling for more than 20 major types of waste.
  • We have a robust line-clearing maintenance program that reduces tree related outages and restoration costs.
  • Using a variety of electric generation facilities and running our most efficient units more often.
  • Working to get crews from other Midwest energy services to bring back service as fast as possible in cases of severe storms when 180,000 customers or more lose power.

Natural Gas Bill Line Items


Here are a few charges that you might find on your natural gas bill, along with their explanations.

Gas Cost Recovery (GCR)
This charge covers the cost of the natural gas we buy and supply to our customers. It includes transmission costs and is approved by the Michigan Public Service Commission (MPSC). We do not make a profit from this charge. This natural gas cost is simply passed on from supplier to customer. 

Delivery Charges 
These charges apply to all customers who receive gas through our system. They cover the cost of getting gas to your home or business. 

  • Customer Charge: A fixed monthly fee that covers costs like metering, billing, and customer service. 
  • Distribution Charge: Based on how much gas you use (measured in Mcf), this covers the cost of delivering gas from storage or transmission lines to your property. 

Other Surcharges 
This includes charges like the Energy Efficiency Program Surcharge, which helps fund programs that promote energy-saving upgrades. Since January 2023, this appears on your bill as “Other Surcharges.” 

Energy Efficiency Surcharge 
This charge helps fund our energy-saving programs. It’s based on how much gas you use and is authorized by the MPSC. 

Excess Peak Demand Charge 
This applies only to Multifamily Dwelling Service customers. If your energy use is more than 92 Mcf in your highest-use month over the past year, this charge helps cover the extra cost for higher demand. 

Non-Transmitting Gas Meter – AMR Opt-Out Charges 
If you choose a non-transmitting gas meter (a meter that doesn’t send readings automatically), you’ll pay: 

  • one-time fee to switch the meter. 
  • monthly fee for manual meter readings. 

Home Products Credit 
This is a monthly credit that shares proceeds from the sale of Home Energy Products such as smart thermostats, insulation kits, CO2 detectors and more. It’s applied to bills from October 1, 2024 through September 30, 2027.   

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