Report: MI Energy Use To Increase Again This Winter

LANSING – The Michigan Agency for Energy issued its latest Winter Energy Appraisal Thursday, which states energy use in the state is expected to increase again this year, with projections for fuel demand to also rise.

Despite the projected increase in winter energy use, projected year-over-year demand for natural gas and electricity is expected to be down. Propane demand for the year is expected to be up slightly.

Demand for gasoline and distillate used mainly for the production of diesel fuel is also expected to be up compared to last year, according to the report.

The report states the annual drop in electricity is due to efforts such as energy waste reduction programs. The decline is estimated to be at 2.7 percent overall in 2017.

Report data projects natural gas prices to remain stable due to steady supplies. About 77 percent of Michigan homeowners use natural gas for heat. Propane and heating oil prices are expected to increase slightly due to rising crude oil prices and expectations of normal winter temperatures from November until March.

Demand for natural gas is expected to drop about 5.4 percent with a 4 percent increase in supply. Propane demand is expected to rise nearly 11.8 percent with supplies in the Midwest to be down 6 percent from last year.

Total electricity sales are expected to be down 2.1 percent in 2017. For distillate fuels, industrial production is up 1.2 percent in 2017.

This story was published by Gongwer News Service.