Compare natural gas prices for Michigan

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.

Energy deregulation in Michigan

Michigan deregulated its energy market in stages during 2001 and 2002, making way for alternative natural gas suppliers. Michigan customers are now able to choose from several retail suppliers serving their local area. Though the word “deregulation” can be confusing, it simply means that you have the power to compare natural gas rates in Michigan and choose the supplier and rate plan that meets your needs.

Note that oversight of all public utilities in Michigan is provided by the Michigan Public Service Commission (MPSC). Contact them with any disputes you are unable to resolve with your supplier.

Energy plans in Michigan

At Choose Energy, we work hard to provide the resources you need to understand deregulation and help you make the best decisions about which supplier and rate structure work for your family. Here is a look at some of the most critical information you will need when making your choices:

  • How can I change natural gas providers? The first step is to locate your most recent energy bill. Then visit ChooseEnergy.com and enter your ZIP code to see a complete list of retail suppliers and rate plans available in your area. Compare the rates listed on your energy bill to those listed on the site, select the new plan you want, and sign up online or by phone. Your new supplier will contact you to complete your setup.
  • Is there any way to bring down my energy bill? We offer a variety of tips for lowering your energy usage, but there is only so far you can bring down a high-rate bill. Instead, you may want to choose a natural gas supplier with lower rates. Note that if you are currently under contract for a fixed-rate plan, you may need to pay an early termination fee (ETF) when you switch.
  • How do I figure out which energy plan meets my needs? Energy plans can be confusing, so we have developed this helpful guide to the commonly used terminology. With this information in hand, you will be able to compare plans and decide which is best for you.
  • What if I don’t select an energy supplier? If you don’t choose a retail supplier, your local utility company will be your default supplier. Michigan has 10 different natural gas utilities, each covering a different local area.

Michigan energy companies

Something that can be extremely confusing about deregulation is the fact that your retail supplier is not the company that delivers natural gas to your home. Instead, there is a single utility company that delivers natural gas to your area. Which one depends on where you live, but that is the company you will contact if you have an outage, since they maintain the power lines and supporting infrastructure.

Though you only have one utility company, you have multiple options for retail suppliers, depending on exactly where you are located. Popular Michigan natural gas suppliers include Constellation, Direct Energy, and Spark Energy. There may be others in your ZIP code as well. Your rates are determined by your supplier, and you should contact them with any billing questions or concerns.

Find the right energy plan with Choose Energy

With Choose Energy, it’s simple to find and get started with the right natural gas plan. Just enter your ZIP code, and we will show you a list of retail suppliers and plan options for your neighborhood. Choose the one you like best and enroll by phone or online. Your new supplier will take it from there, with no service interruptions.

Updated: 8/3/2020

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