Falling prices for natural gas and a reduction in federal tax rates mean DTE Energy natural gas customers will continue to see lower costs on their bills as the company passes its savings on.
New, low-cost natural gas supplies have driven customers’ cost for natural gas down by 20 percent since March 2017, part of a sustained 30 percent decline in total bills over the last decade. In addition, DTE’s buying and storage strategy help keep prices stable and supply always available.
DTE purchases gas from across the United States and Canada during the summer months, when prices and demand are lower. This gas is stored in underground reservoirs for future use, allowing DTE to manage the need for purchasing gas during the winter, making prices more stable even during periods of increased demand.
Giving back all our tax savings
Natural gas savings have already paid dividends for customers, but changes to federal tax law are poised to pass additional savings on as well. The Tax Cuts and Jobs Act, which took effect in January, reduced the federal corporate tax rate from 35 percent to 21 percent, a savings of more than $200 million annually across DTE’s customer population.
Those savings are being refunded to customers through a series of three bill credits over the next year, with the first credit, Credit A, appearing on bills reflecting July usage. This credit reflects DTE’s reduced tax rate going forward, and is based on each customer’s individual usage. After Oct. 1, the savings from Credit A will be incorporated into DTE’s regular rates for natural gas.
A second credit, Credit B, is expected to appear on bills in early 2019 pending approval by the Michigan Public Service Commission. This credit, which is also based on usage, will refund excess tax money collected between January and June 2018.
A third credit, Credit C, will be implemented in 2019 and will refund any additional tax money, including deferred taxes. More details will be available in the coming months on Credits B and C.