Consumers Energy Dropping Prices

LANSING, Mich. (WWJ) - While gas prices spike, natural gas is moving in the other direction. Consumers Energy says prices for its approximately 1.7 million natural gas customers in Michigan are expected to go down about 13 percent starting in April.

The utility says the drop will total about $130 million over the next year -- and bring natural gas prices to 2003 levels.

Consumers says the rate cut follows lower fuel costs related to the recent mild winter, which also lowered bills in the state.

The company announced in a press release that it's delivering on a "Count on Us" promise. This long-term reduction comes on top of lower fuel costs from the recent mild winter, saving a typical residential gas customer about $94 compared to the previous year.

"We're pleased that during our 125th year of service, Michigan families, businesses and local economies will see value from these savings," said Tim Sparks, the company's vice president for energy supply operations, in a press release.

Sparks led Consumers Energy's search for cost-reduction opportunities brought about by changes in the U.S. natural gas market. The company is making significant investments in Michigan in its natural gas system to provide customers the benefit of access to declining fuel costs, per the press release.

"We continually adjust our gas purchasing strategy to ensure we're minimizing our costs so we can maximize the benefits to our customers," Sparks said.

Consumers Energy recommends that customers save additional money by taking advantage of the incentives and rebates the company offers to customers who make their homes more energy efficient. Information on the company's energy efficiency programs is available at www.consumersenergy.com.