If you are a commercial or industrial customer utilizing End User Transportation service, you purchase your gas through an alternative supplier.
The market forces of supply and demand determine the price of natural gas and affect the purchase price MichCon or any other supplier will pay for gas. A high demand for gas or a disruption in supply will tend to drive prices upward. Alternatively, if the demand for gas falls or there is an oversupply of gas in the market, prices will tend to move downward. For more information about market pricing go to the U.S. Energy Information Administration's Web site, eia.doe.gov.
The gas price MichCon charges its End User Transportation customers is the Gas Cost Recovery (GCR) rate. The GCR includes the cost of gas plus interstate transportation fees to move gas from major supply areas located throughout North America. MichCon maintains a diverse portfolio of both fixed price and market price contracts for its GCR supply of natural gas. MichCon's GCR cost of gas and the plans for its supply are reviewed and approved annually by the Michigan Public Service Commission (MPSC). For more information about the GCR rate for MichCon and other utilities see the MPSC Web site.