Consumers Energy Gas Bill Impact Analysis
About this Report
Prepared by Strategen Consulting Inc. for Advanced Energy United, Consumers Energy Gas Bill Impact Analysis: A Case Study of the Effects of Planned Capital Expenditures and Electrification Trends demonstrates that Michigan residential customers with Consumer Energy can expect to see their gas bills steadily increase over the next decade – up to 49% over 2021 levels – due to projected utility capital expenditures and electrification trends.
Consumers Energy, a subsidiary of CMS Energy that provides services for 1.8 million gas and 1.9 million electric customers, released its 10-year Natural Gas Delivery Plan (NGDP) in December 2020, identifying $11 billion in capital investment additions to the rate base from 2020-2030. This means that the value of Consumers Energy’s infrastructure called the “rate base,” will nearly double between 2021 and 2030 despite the utility projecting almost no customer growth.
The impact analysis considers not only the Consumers Energy plan but also modest, customer- and market-driven electrification and efficiency efforts among the utility’s customers. The results highlight the total potential bill that Consumers Energy residential customers may experience trends up to approximately 49% by 2030. Translated into real dollars, the average monthly residential customer bill was approximately $75 in 2021 and is expected to increase to between $114 and $131 by 2030 based on the status quo. If gas prices return to 2008 highs, bills could reach $143/month in 2030.
The analysis also underlines that to safeguard the public interest and protect vulnerable customers from being unduly burdened by an overbuilt gas system, public policy must evolve to adequately scrutinize new capital investments in the gas distribution system.
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