Consumers Energy increased its natural gas rates for distribution less than a year ago.  This fall, they’re doing it again.

The $35 million natural gas rate increase was approved last week by the MPSC, in rate case U-21490.  It will take effect on October 1, 2024.  Although it’s well shy of the $136 million Consumers was seeking, the increase will materially impact the natural gas costs for many businesses.

As we wrote about less than a year ago  the utilities continue to cite increasing costs to replace and maintain infrastructure, along with other operating costs.

It’s not uncommon for a utility to seek a large amount, receive approval for just a portion, and then quickly go back to ask for more.  And it’s not limited to Consumers.  DTE, MGU, and SEMCO are all currently pursuing increases of their own, which we’ll cover in the near future.

What will these increases mean to your business?

Consumers Energy: U-21490

Requested: $136 million.  Received: $35 million.

Effective: 10/1/24, Natural Gas Rate Increase

What we found notable about this rate case is how it will affect some businesses more than others.  Those in the lower-volume rate classes General Service 1 and 2 will see their overall distribution costs go up by about 15%, depending on usage.  The higher-volume General Service 3 customers, on the other hand, will pay 68% more in monthly charges, while per-unit charges will increase by less than 7%.

Most Transportation Gas customers will actually pay less to their utility for distribution.  And the break-even volume between GS-2 and ST for a single meter will go down yet again, from about 6200 Mcf per year to just 4800.

That doesn’t mean every customer using more than 4800 Mcf per year should be flocking to Transport just yet.  The complexities of the program may or may not be the right fit for their business.  It does mean the value proposition of Transportation Gas will improve yet again for customers whose usage was already above that threshold.

For customers with multiple meters, the math gets more complex.  This can also open up more opportunities to find some savings.

If Consumers is your gas utility, the rate increase will likely impact your costs one way or another.  If your gas utility is DTE, MGU, or SEMCO, the proposals currently in front of the MPSC can serve as a preview of what the increases potentially could mean.

We can do the analysis for you and advise you about your options, as we do regularly for our Transportation Gas customers.  Contact us and let’s talk.

And keep in mind that Consumers only provides us copies of bills for our Transportation Gas customers.  If we’re serving you on Gas Choice, or if we aren’t serving you yet, please send copies of any recent Consumers bills you’d like us to review.