MichCon Offers Advice on Evaluating Alternative Natural Gas Suppliers
December 18 2007 - 10:00AM
PR Newswire (US)
DETROIT, Dec. 18 /PRNewswire/ -- With winter's coldest months still
ahead, MichCon is providing customers with information to help them
determine if a change of natural gas suppliers for their home or
business is the right choice for them. Michigan residents and
businesses have the option of purchasing natural gas from their
local utility at a regulated rate, or from a number of alternative
gas suppliers licensed by the Michigan Public Service Commission.
"Alternative gas suppliers are contacting customers by telephone,
by direct mail or door-to-door and asking them to switch their
natural gas supplier," said Mark Stiers, MichCon's vice president
of gas supply. "It's important to be an informed consumer and ask
lots of questions to determine if changing suppliers will actually
help you save money or provide other benefits." Alternative gas
suppliers generally offer a fixed price for natural gas for a
contractual period of time. This price may be higher than the
current rate charged by the local utility -- but often will be
guaranteed not to increase during the contractual period. While
utilities like MichCon cannot offer a fixed price, utilities'
natural gas rates are regulated by the Michigan Public Service
Commission, and are provided to customers at the same price the
utility paid to secure the gas. By state regulation, revenues for
utilities such as MichCon are derived from service and distribution
costs -- not from a mark-up of natural gas prices. When considering
a switch to an alternative gas supplier, customers should ask the
following questions: -- What price do you charge for natural gas?
-- What are the terms and length of the contract? -- Will the price
change during the contract? -- What are my cancellation rights? --
Is there a cancellation penalty? If so, how much? "MichCon supports
a customer's right to choose their natural gas supplier," Stiers
said. "But, with Michigan's tough economy, it's more important than
ever that people understand their options and make an informed
decision so they don't pay more than necessary for their winter
heating bills." To comparison shop natural gas prices, customers
should check the rate offered by the alternative supplier and
compare it to the "Gas Cost Recovery" rate listed on their MichCon
bill. Customers who enroll with an alternative gas supplier over
the phone must be given a copy of the contract within seven days.
Residential and small business customers may cancel the contract
within 30 days of signing with no penalty. Additional information
is available at http://www.my.dteenergy.com/gasoption, or at the
Michigan Public Service Commission Web site,
http://www.michigan.gov/mpsc. DATASOURCE: MichCon CONTACT: Len
Singer, +1-313-235-8809, or Lorie Kessler, +1-313-235-8807, both
for MichCon Web site: http://www.my.dteenergy.com/gasoption
http://www.michigan.gov/mpsc
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