New Natural Gas Rates – what it means to you
The majority of our business customers are billed under the GS-1 and GS-2 rates. Other rate options are available for schools and for large-use customers.
Because the Gas Cost Recovery (GCR) Rate can fluctuate on a monthly basis, the most current listing of gas rates and options can be found in this Gas Rates document *.
The details on all of the current commercial gas rates are provided below:
|Sample Bill: DTE Gas Business Rate GS-1|
|Monthly Customer Service Charge||$ 26.20|
|Gas Distribution Charge||500 Ccf @ 0.24821||$ 124.11|
|2011-U-16993 UETM Surcharge||500 Ccf @ (0.00617)||$ (3.09)|
|Energy Optimization||500 Ccf @ 0.01426||$ 7.13|
|Gas Cost Recovery||500 Ccf @||$|
|Monthly U-16999 IRM Surcharge||$ 0.67|
|RDM Surcharge/Credit||500 Ccf @ 0.01971||$ 9.86|
|U-17103 RDM Surcharge/Credit||500 Ccf @ 0.00769||$ 3.85|
|Sample Bill: DTE Gas Business Rate GS-2 (less than 100,000 MCF)|
|Monthly Customer Service Charge||$ 590.00|
|Gas Distribution Charge||1,500 Ccf @ 0.19995||$ 299.93|
|2011 U-16993 UETM Surcharge||1,500 Ccf @ (0.00538)||$ (8.07)|
|Energy Optimization||1,500 Ccf @ 0.01426||$ 21.39|
|Gas Cost Recovery||1,500 Ccf @||$|
|Monthly U-16999 IRM Surcharge||$ 0.67|
What do the charges on my bill mean?
The Natural Gas Rates that appear on your monthly bill have eight main components:
|Monthly Customer Service Charge:||A fixed “non-gas” monthly charge that varies by type of service. It covers the cost to provide safe, reliable gas service to our customers. It includes the cost to maintain and read meters, maintain the natural gas distribution system and administering billing.|
|Gas Distribution Charge:||The price to deliver the natural gas you use to your business. This charge is based on the amount of gas you use during the billing period.|
|2011-U-16993 UETM Surcharge:||
A surcharge that allows DTE to recover costs from uncollectible debt expense incurred in 2011. This surcharge is based on the amount of gas you use during the billing period.
A surcharge that allows DTE to develop and offer an Energy Optimization program that provides rebates, incentives and energy efficiency education to our customers. This surcharge is based on the amount of gas you use during the billing period.
|Gas Cost Recovery (GCR):||
The price you pay for the natural gas that you used. The GCR rate can change monthly and is the largest portion of a typical gas bill. It’s based on costs incurred by DTE to purchase gas supply and is the same price we pay. Learn more about this charge below.
Note: If you participate in the Gas Customer Choice (GCC) program, the gas component on your bill is represented by the GCC supplier charge. DTE simply bills for this charge, collects payment and reimburses the GCC supplier. Gas choice customers should contact their alternative gas supplier with questions about their cost of gas.
|Monthly U-16999 IRM Surcharge:||
The infrastructure Recovery Mechanism (IRM) is a surcharge that allows DTE to recover costs related to gas main, pipeline and meter improvements.
The Revenue Decoupling Mechanism (RDM) is a surcharge/credit designed to supplement Michigan’s gas utilities’ revenues so that utilities are less dependent on gas sales for financial health. It was adopted to promote customer efforts to reduce energy consumption. This surcharge/credit is based on the amount of gas you use during the billing period.
The Gas Cost Recovery rate can change monthly and is the largest portion of a typical gas bill. We evaluate the GCR factor every month to reflect the cost we expect to pay our suppliers. Once actual gas supply costs are booked, any cost adjustments over or under are factored into the GCR factor - an ongoing "true-up" process resulting in no profit to us. By law, the GCR factor is passed on to customers without any profit or markup. Customers pay what we pay for natural gas. The Michigan Public Service Commission reviews and approves the price we charge for gas.
In firstMonth, the Gas Cost Recovery (GCR) rate changed from $ per hundred cubic feet (Ccf) to $ per Ccf. This change was implemented on a bills rendered basis beginning the first billing cycle in firstMonth.
Gas Supply Cost Factors
Like many other commodities, the price of natural gas is impacted by supply and demand. Weather conditions have an impact. Extreme or lengthy winters raise demand. Severe weather conditions, like hurricanes, can diminish natural gas production and impact supply. All of these conditions factor in to the GCR rate.
DTE does its best to cushion the impact of gas prices on our customers. We purchase and store large quantities of natural gas in the summer. This enables us to take advantage of seasonal pricing, when possible, and acquire gas when demand is lower. Because of this strategy, our gas costs are below the national average.
Natural gas -- a good value
Natural gas continues to remain a good value when compared with other fossil fuels such as propane and heating oil, which have also gone up in price.
This chart compares the cost of natural gas to the cost of propane and oil on an equivalent heat value basis for the winter season of October 2011 - March 2012. Natural gas provides the best value for your heating dollar.