How Natural Gas Rates Are Set

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 is 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. 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.

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).

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.