Explanation of Summer Electric and Gas Charges Plus Recent Surcharges and Credits

Your Consumers Energy bill includes several line items from energy supply and delivery charges to surcharges, credits and energy cost recovery charges/(credits). Use these links to get more details on unbundled electricity and gas charges for nonresidential customers: Explanation of Electric Charges and Explanation of Gas Charges.

Summer Electric Rates Began in June

The cost of electricity is higher during the summer months because of greater demand from air conditioning and other factors. Our energy charges reflect these higher prices through a seasonal rate structure. The seasonal rates were approved in 2008, where summer bills have higher supply cost factors during billing periods June through September. Winter rates use lower supply cost factors and apply on bills rendered October through May.

Electric Rates to Change in Late July

Consumers Energy filed an electric rate case on Jan. 22, 2010, with the MPSC (Case No. U-16191). The company plans to implement all or part of the requested $178 million rate increase in late-July, as allowed under state law.  Any increase will be partially offset by a credit on July through January bills for a refund on Big Rock Point nuclear plant decommissioning costs (Case No. U-15611). For more details on the rate cases, select the following links U-16191 or U-15611.

Surcharges and Credits

The PEM and OPEB surcharge reconciles the company’s actual pension and other post employment benefits expenses against the amount authorized by the MPSC in rates. The MPSC authorized collection of the reconciled costs and they will be reflected in the July bill month in the U-15415-R surcharge. The proposed surcharge for reconciling the 2008 PEM and OPEB costs is roughly $0.0023 per kWh.

The Power Supply Cost Recovery surcharge of around $0.0012 per kWh will reconcile the 2004 and 2005 PSCR charges.  This also is reflected in the U-15415-R surcharge in the July bill month.  For more details about the rate case, click on U-15415-R. All credits and surcharges are approved and ordered by the MPSC.