Spiking natural gas prices have generated national headlines in recent weeks, raising concern about energy bills with the heating season fast approaching.
While prices are increasing due to a variety of global economic factors, Consumers Energy is working to minimize the impact on their customers and Michigan. Below you’ll find information about how they’re ensuring their 1.8 million natural gas customers have affordable, reliable energy to heat their homes and businesses this winter — despite international price volatility.
Media Reports: “Americans should brace for sticker shock on home heating costs as temperatures drop this fall and winter.”
What It Means for Consumers Energy customers:
- Customers will likely experience some price increase for natural gas but are largely shielded from the current uncertainty and volatility of the Market. That’s because Consumers’ vast storage system allows them to buy large amounts of natural gas when it’s cheapest and pass those savings along to customers during the winter when demand is highest.
- Consumers Energy operates 15 underground storage fields with nearly 1,000 wells, totaling more than 149 billion cubic feet (“Bcf”) of gas storage capacity.
- The stored gas is within the state and readily available. On average, gas storage assets have supplied approximately 50% of the natural gas Consumers provides to customers during winter and can provide up to approximately 80% on peak days if needed.
- Consumers purchases the remainder on an as-needed basis, meaning customers may experience some impact from current market pricing. Consumers only charges customers for the actual cost of the gas used.
- Consumers Energy is modernizing Michigan’s natural gas infrastructure, including their storage system, to improve safety and reliability and help protect the environment. When system upgrades — including the replacement of aging pipes and infrastructure — are complete in 2030, Consumers Energy still expects total residential natural gas bills to be lower than bills in 2008. Learn more about their 10-year Natural Gas Delivery Plan here.
Media Reports: “The natural gas spike is exacerbating the United States’ first brush with inflation in more than a dozen years. Families are already dealing with surging prices on everything from used cars and gasoline to bacon.”
What It Means for Consumers Energy customers:
· Consumers is committed to helping Michigan prosper. That means delivering natural gas at competitive, predictable prices and giving customers more control to reduce their monthly bills.
· Natural gas bills remain relatively low historically.
o The average household that Consumers serves is paying about $2.16 a day for natural gas in 2021.
o Consumers Energy customers pay less for natural gas than the national average.
o Households’ average overall bills in 2021 were 21% less than in 2011.
o Over the last 12 months, the price that Consumers Energy residential customers paid for natural gas was 21% less than the national average.
· Consumers Energy connects customers with energy assistance, including a campaign late last winter with the attorney general to promote help via 2-1-1. Whether customers are in search of emergency assistance or ongoing aid, Consumers offers a variety of payment assistance programs: ConsumersEnergy.com/assistance.
· Consumers Energy is helping customers lower their bills through energy efficiency and demand response programs. From using energy at the right times to rebates and energy assessments, Consumers has tools to help customers save energy and money at their homes and businesses. Learn more at ConsumersEnergy.com/Change.
