Match seasonal gas usage to contract pricing in Michigan

Michigan: Build a month-by-month exposure map

Start with EIA: supply, demand, weather and storage price drivers. The table below links this decision to the represented gas companies in Michigan. It does not establish service or supplier availability for every account.

Use weighted prices

For each month, multiply projected therms by that month’s assumed supply price. Add applicable fixed fees separately. An unweighted average gives a low-volume summer month the same influence as a high-volume heating month.

Separate price exposure from operating exposure

A fixed commodity component does not establish firm transportation or remove a curtailment obligation. Ask operations to review notice and response requirements independently of finance’s price scenario.

Michigan utility application

DTE Gas: the program detail behind this decision

DTE’s business guidance distinguishes Gas Cost Recovery service from Gas Customer Choice. DTE’s gas territory differs from its electric territory, including gas service in western Michigan. Use the gas-company name and class on the bill rather than applying electricity choice restrictions to gas. Dte Business Gas; Program Michigan.

Apply the evidence to an account file

In the monthly budget, keep Applicable GCR comparison component, supplier gas price and recurring fees visible. Obtain the service response for Participating alternative gas supplier, return rules and accepted enrollment before assuming that a winter price arrangement also guarantees the required operating flexibility.

Worked check: an average can hide the heating load

Assume a hypothetical two-month illustration uses 3,000 therms at $1.00 and 1,000 therms at $0.60. The commodity total is $3,600 and the usage-weighted price is $0.90 per therm. The simple average price is $0.80; applying it to 4,000 therms understates the illustration by $400. No fees or delivery charges are included. This is arithmetic, not a claim about which local months or prices will be higher. Use all twelve actual delivery months for the real budget.

Turn the review into a calculation

Build a monthly weighted budget. Enter documented assumptions in matching energy units. Keep any charge outside both supply offers separate; the result does not establish eligibility or an available quote.

Read the Michigan utility guide for the wider service-company distinctions. Convert billed gas units using the bill’s heat-content factor when moving from volume to energy.