How Natural Gas Rates Are Set

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

• Gas Cost Recovery: The cost of the natural gas itself, which is measured in thousand cubic feet (Mcf). This is usually about 65% of your total bill and 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 when prices are low and storing it underground until you need it.
• Distribution: Charges include operation and maintenance expenses for pipelines and storage.
• Customer: Charges include billing and metering that are necessary to serve our customers.  This is a fixed charge assessed per month.

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

We work to provide reliable, safe and economical energy services and 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).

Our Cost Controlling Efforts

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

• Buying natural gas during the summer when it generally costs less and store it in our underground fields throughout Michigan.
• Reducing power plant fuel costs by increasing the use of lower-priced Western coal from Wyoming and Montana.
• 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.
• Our robust line-clearing maintenance program 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 restore service as quickly as possible in cases of catastrophic storms (180,000 customers or more lose power).