LANSING – There will be plenty of energy to meet Michigan’s needs this winter because electric use is expected to fall 4.3 percent for the year and natural gas could fall 10.1 percent, the Public Service Commission said in its annual energy appraisal released Friday.
Some of the use and cost reductions are based on slowed economic activity and some are based on expectations that the coming winter will be warmer than last, which was 4.8 percent colder than normal, the report said.
Natural gas, which heats 78 percent of homes in the state, is expected to see prices drop 12 percent from last winter. But the commission also noted that both Consumers Energy and Michigan Consolidated Gas Company have rate cases that could increase those rates some. Consumers is eligible to implement a rate increase in December and MichCon in January.
The commission noted that the state’s natural gas storage facilities are expected to be full at the beginning of the heating season, helping to hold down prices.
The second most popular fuel, propane at 9 percent of homes, is expected to remain about 24 percent below last winter’s prices. Only fuel oil, which heats about 4 percent of homes, will increase by about 9 percent, the report said.
The report also projected motor fuel sales would continue to fall in the state, with 2009’s sales 2 percent below those for 2008.
This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com
a>>
