DTE Energy reduces natural gas rate, saving customers money on their heating bills
DTE Energy has reduced its Gas Cost Recovery (GCR) rate as of January 1, 2023, allowing natural gas customers in Michigan to save nearly $5 million on February heating bills. This reduction is attributed to the company's strategic purchase of natural gas, which shields customers from price spikes. DTE's gas purchasing strategy includes locking in prices up to three years in advance and storing gas during the summer for winter use. This proactive approach keeps DTE among Michigan's lowest-cost providers, with expectations for further price reductions in the coming months.
- DTE's GCR rate reduction leads to nearly $5 million in savings for customers in February.
- The company's gas purchasing strategy protects customers from future price spikes.
- DTE remains among Michigan's lowest-cost natural gas providers.
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DTE’s natural gas buying strategy protects customers from natural gas price spikes, keeping DTE among Michigan’s lowest-cost providers
DETROIT, Jan. 19, 2023 (GLOBE NEWSWIRE) -- DTE Energy’s natural gas customers will spend less to heat their homes this month, with further price reductions in the months to come. On Jan. 1, the company reduced its Gas Cost Recovery (GCR) rate, based on its natural gas purchasing strategy and the decline in natural gas prices. The result? Customers will see a total of nearly
What is the Gas Cost Recovery rate? As a regulated company, DTE passes the cost for natural gas directly to its customers, with no markup or additional cost, meaning customers pay what DTE pays. The company locks in natural gas prices up to three years in advance of delivering it to customers. DTE also buys more gas than customers use in the summer and stores it underground so it is available when customers need it in the winter. These buying strategies smooth out natural gas costs and protect customers from sudden price spikes.
“Keeping energy costs affordable for our customers, especially during the winter when customers really need to keep the heat and lights on, is one of our top priorities,” said Joi Harris, president and chief operating officer, DTE Gas. “This bill reduction, which comes at the time of year when customer use of natural gas is at its highest, proves that our buying strategy works.”
Customers who are enrolled with an alternative gas supplier will continue to pay their contracted rate and will not see savings from this reduction. Customers can confirm who their gas supplier is by checking their natural gas bill, which shows details for their gas supplier (if it is not DTE), while also comparing the supplier’s rate to DTE’s rate. Customers may also compare the rates of all natural gas providers by visiting the State of Michigan’s Compare MI Gas website.
To help customers understand natural gas billing and pricing, DTE offers online explanations of how energy prices are set and how to read a bill.
About DTE Energy
DTE Energy (NYSE: DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric company serving 2.3 million customers in Southeast Michigan and a natural gas company serving 1.3 million customers in Michigan. The DTE portfolio also includes non-utility businesses focused on industrial energy services, renewable natural gas, and energy marketing and trading. As an environmental leader, DTE utility operations will reduce carbon dioxide and methane emissions by more than
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