Consumers Energy in lower Michigan has it figured out. The company announced today that it will lower natural gas fuel costs to consumers by 15% effective April 1, 2013. Consumers Energy's Michigan customer base has saved 26% year-on-year since February 2012 and expects the latest price decline to add up to $200 million in savings over the next year. A typical Michigan family will save as much as $175.00 on the cost of natural gas fired heat during 2013.
"We are moving forward with our plan to provide our gas customers with savings. This is the largest price reduction in recent company history and it's helping Michigan families and businesses," said Tim Sparks, Consumers Energy's vice president of energy supply operations.
The reason Consumers Energy is able to do this is because of its massive storage system -- one of the largest in the country. The company can purchase gas when it's lower priced in warmer months, thereby avoiding the higher-priced spot market in winter months. Consumers Energy continues to invest in its natural gas infrastructure to take advantage of lower-cost supplies, benefiting customers now and in the future. Projects include expansions and gas compressor station updates and replacement of natural gas pipelines.
Sparks added that "prices charged by Consumers Energy for natural gas are the lowest they've been in a decade -- since 2003 -- and we are pursuing future savings. This is a positive signpost for Michigan's economy and the communities we serve."
The company delivers natural gas to 1.7 million customers in 45 counties in Michigan's Lower Peninsula. For more, visit Consumers Energy's web site at www.consumersenergy.com.