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Deregulated Natural Gas Prices for Michigan
Comparison of all natural gas offers are below. Save money for home or business.
Regulated Michigan Consolidated Gas Rates
Michigan Consolidated Gas residential rates are not available at this time.
*Note: The Gas Supply Charge is the part of your bill that will change when you switch suppliers.
Why switch?The utility's rate is regulated by a government board. That doesn't mean that it will be the lowest price. They are required to pass market costs along to you, the customer. Marketers have the flexibility to operate more efficiently and buy gas supplies when it is cheaper, then pass those savings along to you.
Comparing and deciding among the various offers
In the new deregulated industry, buying natural gas is like getting a mortgage. You can choose between contract terms between 1 and 5 years. You can choose to lock in for a long period at a fixed rate, or choose variable rates and rely on an experienced gas manager to get the lowest price.
Most consumers who have switched to marketers have saved money. If the utility price makes you feel more secure, choose one of the options that offers a percentage less than the utility for guaranteed saving. If you want to have a knowledgable gas company managing gas supply to get the lowest possible price, choose a variable rate; it's managed by a gas supplier. If you want to be sure of your bills, and think prices are going up, choose a fixed price.
Regulated rates are not fixed rates, nor can they be
Each province or state has an agency that regulates utility rates. Utilities can and do apply changes to rates retroactively! They are not allowed to offer fixed contracts. By signing up with an energy marketer you can avoid these unexpected rate changes. Or, join an Energyshop.com natural gas buying group. We competitively tender your natural gas needs to deregulated natural gas marketers! As you can see from the previous chart, They can offer you an arrangement to fit your situation. See the current forecast of natural gas prices.
What's included in retail gas prices
If you choose to buy from a gas marketer, your gas service won't change. You will still get a bill from your distributing utility which will indicate a regulated Delivery Charge - about ½ of your bill, that goes to the utility, and a Gas Supply Charge that goes to the gas marketer you chose. If you also have rental equipment or a service contract, these will appear as well.
Remember this cost split when comparing costs. The suppliers, brokers and marketers are offering rates on about ½ of your bill. The distribution charge and monthly service charge is fixed and regulated by an Energy Board or Public Service Commission. As a result, when a promotional message claims a 10% saving, it is referring to 10% of the ½ controlled by the energy marketer.
Example: A typical annual gas bill is $900. Half of that, $450, is a regulated transportation and delivery charge. The remainder, $450, is the gas supply charge. A gas marketer offering a 10% saving is offering a saving of $45, which is 10% of the $450 gas supply charge. The saving on the total gas bill is 5%, which is about $45 saving on a $900 gas bill.
Have you seen a different price recently?
If you've seen a price from a marketer that is different from the list above, please enter it so others can make an informed purchasing decision. All comments are welcome.