DTE customers can expect to see natural gas prices drop in March and again in April – nearly a 20 percent drop over the March 2017 price. The two-month decrease will mark the fourth price drop for natural gas in the last thirteen months.
While some parts of the Northeast saw the price of natural gas skyrocket at the height of this winter’s coldest weeks, DTE customers benefitted from a drop in the price of natural gas over the same period. The trend will continue with additional drops in what is known as the “Gas Cost Recovery” (GCR) rate in March and again in April.
“Though many Michigan residents saw their heating bills rise during bitter cold periods, compared to last year’s mild winter weather, falling natural gas prices helped offset the hit to DTE customers’ bills,” said Dan Brudzynski, vice president of DTE Gas sales and supply. “By April, rates will be approaching 20 percent below the cost of gas in March last year.”
The GCR rate is a portion of the total bill customers pay. DTE “passes through” the actual cost for natural gas without a mark-up, meaning the price DTE pays is what customers pay. DTE expects April prices, measured in dollars per ccf (100 cubic feet), to be set at $0.286. The GCR rate will cause the average total bill to drop about 3 percent for 2018, compared the 2017 average. With DTE’s 2018 forecast, customers will have seen their average gas bills drop 30 percent over the last 10 years.
DTE pulls from different services across the United States and Canada and buys and stores vast quantities of low-priced gas in the summer months. This allows DTE to manage the need for purchasing gas during the winter and offer a more stable price for natural gas, even at high-use times.
Customers can find more information on how to save energy by going to www.dteenergy.com/saveenergy . Customers can learn more about rates here. Michigan residents also have a choice of their gas supplier and can review current GCR rates on the Michigan Public Service Commission’s website .