Over the past year, you’ve undoubtedly noticed increasing prices of many everyday goods and services such as groceries and gasoline. Similarly, natural gas prices have also increased. From January through September 2022, wholesale natural gas prices more than doubled what they were compared to last year during the same time period according to the NYMEX Natural Gas Contract Settlement Price History.
According to the U.S. Energy Information Administration, natural gas prices are expected to remain elevated through the remainder of 2022. Higher gas prices can mean higher bills for Michigan customers, especially during winter when usage increases.
Although there are many ways to manage your natural gas consumption, one way to protect your budget is to sign up for a fixed price plan. Grand Rapids Energy’s fixed price plans come in a variety of term lengths and help protect you from further increases in natural gas prices.* Click here to find the plan that best suits your needs.
Why are natural gas prices increasing?
Supply and demand are the primary drivers of natural gas prices. For many years, U.S. natural gas production was strong enough to meet increasing demand. Current events, however, have caused additional demand for natural gas and reduced the available supply. Some of the factors leading to the increased demand include:
- Higher demand for natural gas to produce electricity – especially for summer air conditioning.
- Increased exports of liquefied natural gas.
- Geopolitical uncertainty.
- Increased usage as businesses return to normal from the pandemic.
When will gas prices go back down?
Because there are a number of factors that affect supply and demand, there is no way to definitively know when or how natural gas prices will change in the future.
My fixed price plan is near expiration and the new fixed price being offered is so much higher. Why is it so much higher?
If you have been on a fixed price plan, you have been protected from changes in wholesale natural gas prices during your contract term. Your new fixed price reflects changes in wholesale natural gas prices which have been increasing.
Energy Assistance Options
If you are worried about paying your bill or missing a payment due to financial hardship, there are financial assistance options available to you. Please visit https://www.michigan.gov/mpsc/consumer/energy-assistance for a comprehensive list of energy assistance options.
Grand Rapids Energy (GRE) is not working for, and is independent of, your utility or other supplier.
*GRE service is available for eligible customers participating in the Gas Customer Choice program through DTE Gas Company or Consumers Energy. GRE rates do not include taxes or local utility charges. For more information regarding terms and conditions, call 1.800.841.1541, write to Grand Rapids Energy, 400 Renaissance Center, Ste. 2600, Detroit, MI 48243 or visit this site. Early termination charges apply for fixed price plans.