Consumers Energy Announces New Plan to Continue Upgrading Michigan's Natural Gas System

Rhea-AI Summary

Consumers Energy has announced plans to modernize its natural gas system serving over 1.8 million Michigan homes and businesses. The company will replace up to 10,000 vintage service lines and install remote control valves on major pipelines. The upgrade plan includes modernizing gas delivery hubs and pressure regulation facilities within the next decade.

The company has filed a $248 million natural gas rate request with the Michigan Public Service Commission, with potential impact on customer bills starting late 2025. The recently completed Mid-Michigan Pipeline has upgraded hundreds of miles of transmission pipeline system. The modernization project aims to enhance safety, reliability, and environmental sustainability while maintaining costs at less than $3 per day for typical households.

Positive

• Comprehensive modernization of natural gas infrastructure serving 1.8 million customers
• Completed Mid-Michigan Pipeline upgrade enhancing transmission capabilities
• System improvements maintaining costs under $3 per day for typical households

Negative

• Potential rate increase pending $248 million request approval
• Extended timeline for complete modernization stretching to mid-2030s
• Significant capital expenditure required for infrastructure upgrades

Blueprint Calls for New Service Pipes, More Modern Facilities

JACKSON, Mich., Dec. 16, 2024 /PRNewswire/ -- Consumers Energy today announced new plans to continue modernizing and strengthening its natural gas system that heats over 1.8 million Michigan homes and businesses. Upcoming investments will replace up to 10,000 decades-old natural gas service lines that directly serve customers, plus put valves on major pipelines that can be remotely operated to respond to emergencies.

"This month's cold weather provides a real-life reminder of the need for a strong natural gas system that keeps our friends and neighbors warm," said Holly Bowers, Consumers Energy's vice president of gas engineering and supply. "Our Natural Gas Delivery Plan is ensuring our system remains safe in all weather, while continuing to get cleaner for Michigan's environment and costing the typical household less than $3 a day."

Consumers Energy provides natural gas to over 1.8 million homes and businesses, over 1 million of them in Southeast Michigan. In all, the company's natural gas team of some 2,000 employees serves customers in 45 counties.

Highlights of the Natural Gas Delivery Plan:

• Replacing up to 10,000 vintage service lines that go directly to homes and businesses, modernizing and reducing the system's risk of gas leaks, and continuing to upgrade the distribution lines connected to those services.
• With the recently completed Mid-Michigan Pipeline, Consumers Energy has now upgraded hundreds of miles of the transmission pipeline system that carries natural gas across the state.
• Installing remote control valves in our transmission system to quickly isolate the system when unexpected conditions occur. This work should be complete by the mid-2030s.
• Modernizing gas delivery hubs called "city gates" and pressure regulation facilities to ensure gas flows safely and reliably to customers. These major facilities should be fully modernized in the next decade.

To continue making these improvements, Consumers Energy today is filing a $248 million natural gas rate request with the Michigan Public Service Commission. The request will be reviewed, and, if approved, there would be no impact on customers' bills until late 2025.

"Consumers Energy is honored to serve so many Michiganders who count on us, which is why we're working for today and the long term to upgrade our system to deliver natural gas dependably," said Chris Fultz, Consumers Energy's vice president of natural gas operations. "When you see Consumers Energy employees at work, you can be sure we're making our system safe and secure to serve you for years to come."

Consumers Energy is Michigan's largest energy provider, providing natural gas and/or electricity to 6.8 million of the state's 10 million residents in all 68 Lower Peninsula counties. We take seriously our responsibility to provide that gas to millions of customers that need it from us, and that is why we're making our system stronger, safer and more affordable than ever before. 

For more information about Consumers Energy, go to ConsumersEnergy.com.

Check out Consumers Energy on Social Media 

Facebook: https://www.facebook.com/consumersenergymichigan
Twitter: https://twitter.com/consumersenergy
LinkedIn: https://linkedin.com/company/consumersenergy  
Instagram: https://www.instagram.com/consumersenergy 

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SOURCE Consumers Energy

FAQ

How much is Consumers Energy's new natural gas rate request in 2024?

Consumers Energy filed a $248 million natural gas rate request with the Michigan Public Service Commission in December 2024.

When will Consumers Energy's new gas rates affect customer bills?

If approved, the new rates would not impact customers' bills until late 2025.

How many vintage service lines will Consumers Energy replace under the new plan?

The plan includes replacing up to 10,000 vintage natural gas service lines that directly serve customers.

What is the timeline for Consumers Energy's gas facility modernization project?

The company plans to complete the modernization of major facilities including city gates and pressure regulation facilities within the next decade, with remote control valve installation continuing through mid-2030s.

How many Michigan customers does Consumers Energy serve with natural gas?

Consumers Energy provides natural gas to over 1.8 million homes and businesses across 45 counties, with over 1 million customers in Southeast Michigan.