For the fourth consecutive month, DTE customers are paying less for natural gas as the company reduced the Gas Cost Recovery (GCR) rate on Feb. 1.
The cut, to $2.20 per 1,000 cubic feet of natural gas, means the price customers pay has fallen by 20 percent since October 2019.
DTE passes its cost for gas on to customers with zero markup, meaning customers benefit directly when the price of gas falls, like it has the past four months.
“Keeping energy costs affordable for our customers, especially during the winter, is one of our top priorities,” said Dan Brudzynski, vice president of Gas Sales & Supply, DTE Gas. “When our natural gas costs come down, we pass these savings directly to our GCR customers, which results in lower winter energy bills.”
To take advantage of the abundant storage capacity Michigan’s geology offers, DTE purchases natural gas in the summer months when demand and prices are lower. This gas is then injected underground into former natural gas reservoirs, where it can be held until the fall and winter months when demand increases.
This strategy allows DTE to reduce the need to purchase gas at higher market rates over the winter, keeping costs down.
Most DTE Gas customers are already seeing these savings on their bills today, unless they participate in the Gas Choice program These customers, who purchase their natural gas from an alternative gas supplier, will continue paying their contracted rate, which could be higher or lower than DTE’s price, and will not see any savings from this cut.
DTE remains responsible for reading meters and printing bills, maintaining a safe and reliable system and responding to emergencies for all customers. However, customers enrolled with an alternative gas supplier purchase the actual gas they use each month from that company at an unregulated rate.
If you or your family and friends are not sure who provides their natural gas, information on gas choice is available on the web at dteenergy.com/gaschoice. The Michigan Public Service Commission also has a price comparison tool available at Michigan.gov/CompareMIGas so consumers can see how DTE’s price compares to rates offered by alternative suppliers.