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Michigan Gas Costs—set to increase dramatically

With Consumers Energy approval for their “extraordinary rate cost recovery” the other Michigan utilities have quickly followed. Consumers’ June cost is $5.597, compared to Realgy’s price at $5.240 or a savings of $0.357/MCF. Consumers Energy has been approved to charge this cost until April 2015.

money gas

Recent filing to the MPSC discloses the following:


The current price in June is $4.24/MCF. In their U-17332 filings it looks like they are requesting an increase to $5.32 effective August 1.


The current price in June is $4.71/MCF. In their U-17331 filings it looks like they are requesting and have been approved for an increase to $5.278 effective the first cycle following the date of the order, June 6.


The current price in June is $4.62/MCF. In their U-17333 filings it looks like they are requesting an increase to $5.7525 effective July 1.

The full documents are available at:

Realgy Energy Services is significantly less than the utility service. Additional information is available at; www.realgyenergyservices/michigan


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Michigan Sets Expedited Review of Polar Vortex-Driven Hike

As anticipated the costs associated with this winter’s weather is starting to be tabulated and will be passed through to customers who receive their gas service from Consumers.

DTE, SEMCO and MGU are all following suit. The same reason will be cited;

“Significant, unanticipated increases in the market price for natural gas as a result of the Polar Vortex phenomena, extended periods of colder-than-normal weather occurring in Michigan and elsewhere in the United States and associated significant increases in demand for natural gas and natural gas send-out.”

Realgy has already passed through the costs required by us to deliver the extra gas demanded by each utility. We will return to our low costs which historically are below each of the utilities. At the same time, the utilities will begin passing through these costs and the cost will stay in place until it’s all collected.

Read the whole Energy Choice Matters Article, Michigan Sets Expedited Review of Polar Vortex-Driven Hike in Consumers

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MI Cost Recovery is coming April 2014

MI natural gas utilities have requested approval to pass-thru the costs of procuring natural gas during this winter. This winter’s extraordinary weather is creating as you can imagine an extraordinary cost increase.


Application of CONSUMERS ENERGY COMPANY for approval of a gas cost recovery plan and authorization of gas cost recovery factors

The above link is to the regulatory filings detailing how MI utilities want to recover winter costs by increasing their ceiling rates starting April 2014 which would last 12 months as follows;

Consumers: $5.575

SEMCO: $5.31

MGU: $5.22

Consumers is making an extraordinary request to recover: $90,000,000 in winter related costs.

In Dec 2013 they filed their normal rate case of $704,024,000 which was revised to $793,346,000 or about $90,000,000 due to winter related costs.

Consumers would increase their ceiling price from $4.3962 to $5.5750 (about $1.20 / MCF just for winter). This was intended to start April 2014.

The MPSC (MI public service commission) is recommending approval the MI AG (attorney general) opposes it. If these costs are delayed in getting passed-thru then the carrying cost (interest) on $90 million will cause a larger increase later on!

The other MI gas utilities have filed extraordinary cost increases as well, which include;

SEMCO would increase their ceiling price from $4.73 to $5.31

MGU would increase their ceiling price from $4.77 to $5.22

The only gas utility that did not submit an extraordinary cost increase to start April 2014 was:

MICHCON has not submitted an extraordinary rate increase at this time (perhaps waiting for the ruling on the AG appeal). At present their ceiling will be $4.47.


Realgy has passed along all costs from this winter in the month the costs were incurred. While our cost were above each of utilities, with the release of winter are costs, they are falling sharply and Realgy will be below the utilities starting in May 2014 and continuing for the foreseeable future.


In summary:

MI utility gas prices are going up due to NYMEX price increases starting April 2014.

All but MichCon has requested to recover the costs associated with winter. This increase is being delayed from an appeal by the AG.

The impact of the delay will cause the eventual cost pass-thru to be higher due to the interest charges on the extraordinary costs from this winter.

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For all our natural gas and electric customers not currently on a fixed price, Realgy offers ServiceMatchTM as follows:

ServiceMatchTMBuyer has the right to present all written offers to RES that provide pricing and terms for service under the Program. RES will match the proposed terms and pricing from all qualified electric or natural gas service providers. If RES cannot offer better terms or pricing or match the same terms and pricing, RES will transfer Buyer to the new electric or natural gas supplier upon Buyer’s written request at the end of the Term. ServiceMatchTM is not valid when Buyer has a Fixed Price.


Please be aware that ServiceMatchTM is not a new service.

Realgy offers this and other services including but not limited to PriceWatchTM and natural gas storage, to all our eligible customers.

If you have any questions regarding ServiceMatchTM, fixed prices, or the end of your current Term, contact a Realgy Energy Services customer service representative at 860-300-6747.

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