Consumers Energy costs rise by $3.50, but not bills

Consumers Energy’s gas prices are rising by an average of $3.50 for users starting Nov. 19.

Despite the increase, Consumers Energy customers should have a lower bill than this time last year. The lower prices are because of a 10 percent drop in the price of natural gas, said spokeswoman Mary Gust.

Gust said this year’s average bill is $94, down from last year’s average of $97.

Students who live in Lexington Ridge Apartments and Copper Beech Townhomes will be primarily affected by the raised prices.

“So, with the rate increase, we believe that the typical residential customer will see a $2.50 drop in their overall bill, even with the rate increase,” Gust said.

Consumers also has 14 storage fields, where they can buy an excess of gas while it is cheap and store it underground until it is distributed to customers.

What does it cover?

The price increase will help cover things such as pipeline maintenance, strengthened security and numerous investments Consumers Energy has made.

The new prices go into effect after the six month waiting period required by the Michigan Public Safety Commission. The initial request for raising prices was made last May.

Dexter sophomore Patrick Sinnott said the price increase is not necessary at this point in time.

“I guess I’d be annoyed, especially considering the economic situation America’s in right now,” Sinnott said.

While Sinnott was unhappy with the price raise, other students disagreed.

Clarkston junior Nik Rogers thinks the price fluctuation is common, and Consumers is trying to not to have its prices depend on a fluctuating market such as natural gas. He said the true worth will be figured out over time.

“I guess it’s good for transition, from an economic standpoint,” Rogers said. “It’s all right with me. It’s probably pretty common for companies to jack prices up.”

Gust said the price raise is fair even in today’s economy because of lower natural gas prices.

“The good news is we are fortunate that the gas prices are much softer than last year,” she said. “We do work really hard to keep prices down.”