DETROIT, Nov. 8, 2010 /PRNewswire/ --MichCon, DTE Energy's natural gas utility, said today that its 1.2 million customers across the state should see lower heating bills this winter.
A typical residential customer should see their monthly gas bill drop an average of $15 a month during the upcoming heating season, as compared to last winter, according to Jerry Norcia, MichCon president and chief operating officer.
"With winter's coldest months still ahead of us, we're extremely happy to be able to reduce our natural gas price and pass the savings entirely on to our customers," Norcia said.
Through a reduction in wholesale gas prices and the execution of its purchasing strategy, MichCon has been able to reduce its natural gas rate – called the Gas Cost Recovery factor – by approximately 20 percent Last winter, MichCon's natural gas rate ranged from $0.75 to $0.80 per hundred cubic feet (Ccf) of gas. Effective Nov. 1, the natural gas rate fell to $0.62 per Ccf.
"Because we can store large quantities of natural gas, we were able to lock in a significant supply of gas at reduced prices, and pass that savings on to our customers," Norcia said.
Even with the price reduction, MichCon recognizes that heating bills still may present a challenge for some customers – particularly senior citizens and households with limited incomes. The company offers a number of programs to help customers manage their energy bills, and also can work with those who may need financial assistance.
"With Michigan's tough economy, we are committed more than ever to work with our customers to help them stay warm this winter," Norcia said. "Customers who think they may have difficulty paying their utility bill should call DTE Energy at (800) 477-4747."
SOURCE MichCon
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