Frequently Asked Questions

The Michigan Gas Customer Choice (GCC) program allows natural gas customers of Consumers Energy, DTE Gas, Michigan Gas Utilities, and SEMCO to shop for natural gas for their home or business from a diverse market of alternative gas suppliers. Customers may choose an alternative gas supplier or do nothing and continue to get their natural gas from their local gas utility under existing regulated rates.

An alternative gas supplier (commonly known as an AGS or supplier) is a licensed third party company who sells natural gas at unregulated rates to customers located in Michigan, where gas is delivered to customers by a natural gas utility that participates in the customer choice program. An AGS is required to be licensed by the Michigan Public Service Commission and is a separate entity from your local gas utility company.

No. The natural gas that you receive at your home or business meets the same quality standards whether it is purchased from the utility or an alternative gas supplier.

Public Act 634 of 2002 requires all alternative gas suppliers to be licensed by the Michigan Public Service Commission (MPSC). In order to receive a license from the MPSC, the supplier must meet certain necessary financial, managerial, and technical capabilities. To find out if a company has met these guidelines, check out the MPSC’s list of licensed alternative gas suppliers.

No. You can continue to receive your natural gas from your utility company. The choice is yours.

Although customers are not required to compare or shop, customers can consider their options by using this website and the price comparison chart to determine if an alternative gas supplier is right for them.

Customers decide to shop for a variety of reasons. Some suppliers offer fixed rate plans that allow customers to lock in a defined unit price for a defined period of time. Other customers switch to plans that have an environmental aspect to their natural gas service. Some customers choose to switch in order to take advantage of incentives that an AGS may offer.

The MPSC has provided this site to help educate and inform customers.

Not necessarily. Unless a supplier offers a guaranteed savings contract, there is no guarantee that you will save money if you switch to an alternative gas supplier.

It is important to understand the different types of offers that may be available from an AGS. When natural gas is purchased from a local gas utility, the rate charged changes periodically and is regulated and approved by the MPSC. AGSs may offer a fixed price and/or a variable price. Some offers may include a lower introductory price or other incentives that may appeal to customers. It’s important to make sure you understand the product type, price and terms and conditions before agreeing to a contract from an AGS.

• Fixed Price Plans: Customers will be charged the same amount per each unit consumed for the length of their contract, irrespective of any changes in the natural gas market.
  
• Variable price plans: Customers will be charged a monthly rate per each unit consumed (as defined in the sales contract) which typically changes each calendar month.

No. The prices offered by alternative gas suppliers are not regulated or approved by the Michigan Public Service Commission.

Yes. Natural gas utility rates for the sale of the natural gas commodity are regulated and approved by the Michigan Public Service Commission. Additionally, the regulated utilities are not allowed to make a profit on their sale of the natural gas commodity.

Utility prices are regulated and approved by the MPSC and do not include a profit component. AGS prices are not regulated or approved by the MPSC and are determined by the competitive marketplace.

For how the GCR rate is determined, please visit Explanation of charges on residential natural gas bill

Your current natural gas utility (Consumers Energy, DTE Gas, Michigan Gas Utilities, or SEMCO) will continue to deliver the natural gas to your home or business, read your meter, and bill you. This remains the same whether you continue to be a full service utility customer or you choose to purchase natural gas from an alternative gas supplier.

In the event of an interruption in service, emergency, or any other gas related issue call your local distribution company (Consumers Energy, DTE Gas, Michigan Gas Utilities, or SEMCO).

Your alternative gas supplier will not charge any switching fees. However, your local utility may charge a $10 switching fee if you change suppliers more than once in any 12-month period.

It is important to understand your alternative gas supplier’s early termination fee policy prior to signing a contract. If you choose to end your contract early, a termination fee may apply. See Customer Protections for early termination fee caps. Additionally, if you choose to return to the utility you must remain a user of the utility’s natural gas commodity for 12 months.

If you do no nothing at the expiration of your contract, it will continue on a month to month variable rate basis, cancellable at any time without penalty.

No.

If you enroll with a new alternative gas supplier your current contract will be cancelled by the new enrollment and you will begin receiving your service from the new alternative gas supplier within one to two billing periods. If you cancel with your current alternative gas supplier in writing or by phone you will return to your utility service and will be required to stay for 12-months. Contract termination and/or utility switching fees may apply.

Due to the extremely cold temperatures during the winter months, customers who are on a variable rate contract with alternative gas suppliers may see significant increases in the price they pay for their natural gas during the winter. The cold weather may cause an increase in use of natural gas not just for heating purposes, but to create electricity. This may cause a strain on the transportation and infrastructure system that delivers electricity and gas. When demand is high and capacity is strained, costs increase.

Yes. Nothing will change with regards to your budget plan.

No. If a customer is in arrears with the utility, they are not eligible to participate in the gas customer choice program until arrearages have been paid in full to the utility.

• Are you licensed by the Michigan Public Service Commission?
• What is the rate per Ccf, Mcf or Therm that I will be charged?
• Is the rate fixed or will it change from month to month?
• What is the length of the contract?
• What happens when my contract expires?
• Is there a termination fee if I cancel the contract early? If so, how much is the termination fee?
• How do I cancel?
• How long does it take to return to the utility once I have cancelled?
• Will I receive two bills?
• Who do I contact regarding billing issues?
• Are current budget plan customers eligible?
• What if my utility account is in arrears?