Michigan energy rates
In most states, the local utility company provides natural gas as well as electric service. In Michigan, though, you have the power to choose because it’s a deregulated market. Deregulation means there are multiple energy companies in Michigan competing for your business. Michigan natural gas is available from several different retail suppliers on numerous rate plans. Here’s what you need to know:
- Fixed-rate: A fixed-rate plan locks in your energy rates for a specified period. Each company sets its own term lengths, but 12, 24, and 36-month plans are often available. In many cases, the longest term offers the lowest rates. It’s important to note that although your rates are fixed, taxes and government fees may fluctuate year over year or even month over month.
- Variable-rate: If you don’t want to lock into a long-term contract, or if you are willing to gamble on pricing, a variable-rate plan may be better for you. These plans link rates to wholesale energy prices, which means they might go up or down each month.
- No deposit: If you have excellent credit, you may not owe a deposit for a traditional fixed-rate or variable-rate plan. For those with weaker credit profiles, no deposit plans are available from many suppliers. These are typically prepaid, much like a prepaid cell phone plan.
- Green energy plans: Those interested in minimizing their carbon footprint may want to consider a green energy plan. These often come at a higher rate than other types of plans, but they are a great way to offset your carbon emissions.