Alternative natural gas suppliers may offer savings
Voluntary program open to all MichCon customers

Ann Arbor News
February 04, 2006
By Jo Collins Mathis

Downs Herold is always looking for a good deal.

At a time when so many others are afraid to open their heating bills, Herold is actually pleased about his.

About 18 months ago, he signed up with an alternative supplier of natural gas, MXenergy, and now is enjoying gas bills 50 percent less than his neighbors.

Herold and his wife, Sondra, wish more people knew about the option.

Gas Choice is a voluntary program open to all MichCon customers, giving them the option to choose an alternative gas supplier. Once a MichCon customer chooses one of about a dozen suppliers, that company will supply gas at an agreed upon price. Regardless of who supplies the gas, MichCon will continue to deliver the gas, read meters, administer billing and respond to emergencies and leaks.

About 250,000 of MichCon's 1.2 million customers participate in the Gas Choice
program, and savings vary from supplier to supplier.

When Herold signed up for MXenergy's three-year plan, he agreed to pay 57 cents per CCF (hundred cubic feet), with a guaranteed limit on annual increases.

His rate this year is 0.671 per CCF, compared to MichCon's current rate of $1.095 per CCF.

"For a while, I think we actually paid a couple cents more than the MichCon rate,''
Herold said. "But I'm sure getting even this year.''

The starting rate at MX now is $1.259 per CCF.

"So it wouldn't be a savings this year if someone wanted to sign on,'' he said. "Unless MichCon keeps raising their rates.''