How to Choose a Natural Gas Supplier

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2 Choice. From groceries to gas stations to banks, you re used to having a wide range of choices when you go shopping. Now you can add natural gas to the list. That s right. Now you can choose where to buy your natural gas. Choice means competition. A number of companies are competitors for your business by offering different prices in an open market. You are able to compare prices and shop for natural gas just like you shop for everything else. But while competition means greater choice, and hopefully lower prices, it also means that you will have to do your homework before deciding where to buy your natural gas. With choice comes the responsibility to get all the information you can about what your choices are and what kind of service you need. The information here will help you understand what choice means to you, and help you become an informed shopper. 1

3 Why Choice? Introduced to residential and business customers in April 2001, choice was driven by market forces and by people like you who wanted freedom to choose where to buy natural gas. History of Choice. From , more than 150,000 Michigan customers chose a different natural gas supplier by participating in a successful pilot program called Gas Customer Choice. An expanded Gas Customer Choice program was phased in. By April 2003, every Consumers Energy natural gas customer was eligible to choose his or her supplier. 2

4 Exactly What s Changed... What Stays the Same? Traditionally, companies such as Consumers Energy have provided all of the services needed to bring natural gas to your home. We take care of buying the natural gas. We deliver it to your home or business and charge you for this service. We make sure our delivery system a network of gas pipelines is well-maintained and operates safely. If there are problems, we re the folks who show up to fix them. With choice, you can shop around for your best deal, and select someone else to provide your natural gas. Whatever choice you make, we still deliver the natural gas to your home or business. We still make sure the delivery system is maintained. And we still fix problems that might occur. How it Works Now Consumers Energy will maintain and repair gas lines and respond to emergencies, as it always has. With Choice Your Supplier Delivery 3

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6 Making Your Choice. Your Choice Getting Started Switching Suppliers I want to switch suppliers NOTE: If you switch, you must stay with a supplier other than Consumers Energy for 12 months Visit the MPSC Web site at for a list of participating suppliers } Talk with suppliers. Use the guide in this brochure to note prices and other details before making your decision Pick a supplier and sign up. Your switch will be confirmed when we list the name and phone number of your new supplier on your gas bill I have switched, and want to switch again NOTE: If you switch back to Consumers Energy, you must continue buying gas from us for at least 12 months Visit the MPSC Web site at for a list of participating suppliers Talk with suppliers. Use the guide in this brochure to note prices and other details before making your decision } If you are switching to a supplier other than Consumers Energy, make your new deal. Your new supplier will coordinate the switch with us If you are switching back to Consumers Energy, contact your current supplier and let them know you want to switch. They will handle the details I don t want to switch You do nothing N/A 5

7 As a natural gas customer, you have two basic choices. You can choose to switch to another supplier. Or you can choose not to switch. This chart explains what steps to take, and what happens with each choice. Cost of Gas Delivery Billing The supplier you choose sets the price you pay for natural gas Consumers Energy delivers the gas to you Consumers Energy sends you one bill. It will list the cost of your supplier s gas and our delivery charge The supplier you choose sets the price you pay for natural gas Consumers Energy delivers the gas to you Consumers Energy sends you one bill. It will list the cost of your supplier s gas and our delivery charge You pay Consumers Energy s current rate, which may vary from month to month Consumers Energy delivers the gas to you Consumers Energy sends you one bill. It will list the cost of our gas and our delivery charge You pay Consumers Energy s current rate, which may vary from month to month Consumers Energy delivers the gas to you 6 Consumers Energy sends you one bill. It will list the cost of our gas and our delivery charge

8 How Do I Decide? Shopping for a natural gas supplier may be a new experience for you, but it s just like any other important purchase; when you re well-informed, you can make the decision that s best for you. Before making any decisions, ask each supplier the following questions. Are you licensed with the Michigan Public Service Commission to supply natural gas in Michigan? Supplier Name: What is the price you will charge me per thousand cubic feet (Mcf) or per hundred cubic feet (Ccf)? Does this price include all fees? Is the price fixed, or does it change? If the price is variable, how often does it change? Are there any built-in price increases or decreases? Is there any membership or other fee to sign up with you? Do I need to sign a contract? What is the length of the contract? Is there a fee if I cancel the contract early? Is there a customer incentive for signing up? What happens when my contract expires? How Do I Find A Supplier If They Don t Find Me? Participating natural gas suppliers are listed on the Michigan Public Service Commission s Web site at You also may reach this list from the choice section of Consumers Energy s Web site at 7

9 You can switch once every 12 months of the program year (April-March) for free. You pay $10 for each additional switch during that same April-March period. Be sure to check any contract you sign with a supplier to see if there is a penalty for early termination. If you return to buying natural gas from Consumers Energy, you must continue buying from us for at least 12 months. Our rate can vary from month to month, and is regulated by the Michigan Public Service Commission. Supplier Name: Supplier Name: Help Comparing Prices. Your energy bill will tell you how much natural gas you used during the past 12 months, so that you can compare prices for an entire year. 8

10 FAQs Gas Customer Choice Do I have to choose a new supplier? No. You may choose to continue buying natural gas from Consumers Energy. You do not have to take any action if you choose this option. Is there a deadline for choosing a new supplier? No. You may choose a new supplier any time you want. How do I make the switch to a new supplier? All you have to do is sign up with your supplier. That supplier will notify Consumers Energy that you have switched. How do I know that I ve been successfully switched? Once the switch is effective, we ll include your supplier s name and phone number on the energy bill we send you. What are you doing to prevent slamming, changing my supplier without my consent? To help prevent slamming, we ll list your supplier s name and phone number on the energy bill we send you. If you didn t consent to buying from the supplier we list, you can contact that supplier and ask to be switched back. If I choose a new supplier, can I switch to another supplier at any time? Yes, but there may be a cost. Once you have chosen a different supplier, there is a $10 fee if you switch again within each 12-month period (April-March). In addition, the contract you signed may have a penalty for early termination. If I choose a new supplier, can I switch back to Consumers Energy? Yes, if you ve been with a supplier other than Consumers Energy for at least 12 months. In addition, the contract you signed may have a penalty for early termination. Once you switch back to Consumers Energy, you must continue buying gas from us for at least 12 months. What happens if I pick a supplier who then goes out of business? Consumers Energy will supply your gas at its current rate at the time, unless you choose another supplier. Your supply of gas will not be interrupted. If I choose another supplier, will my service decline or be slower in emergencies? No. You will continue to receive the same reliable service you always have received, regardless of what supplier you choose. Consumers Energy will provide equal service to all customers, whether we provide both supply and delivery, or just delivery. Who do I call with a billing question? You should call your natural gas supplier if you have questions about the price you re paying for natural gas. Call us if you have questions about our delivery cost or other Consumers Energy charges on your bill. If I choose another supplier, will I still receive financial help from programs for which I may be eligible? Yes. Assistance from programs such as LIHEAP (Low Income Home Energy Assistance Program) and the Winter Protection Plan is available to eligible customers regardless of who supplies their natural gas. Is all natural gas the same, or can a lower price mean lesser quality? The price you pay will not affect the quality of the natural gas you receive, regardless of the supplier you choose. If I am on the Budget Plan, can I participate? Yes. 9

11 Still Have Questions? Our Web site contains plenty of information about choice. In addition, our customer service representatives are happy to answer your questions. You may reach them at: (800) For gas leaks and emergencies, call (800) We'll respond day or night. 10

12 Looking for Ways to Save on Your Energy Bill? About 40 percent of your total home energy cost is for heating during the cold winter months. While no one can control the weather, here are some tips that can reduce your heating costs: Every degree you dial down could save 1 percent to 3 percent in heating costs Keep furniture, carpeting and curtains from blocking heat registers and air return ducts Have your furnace serviced before the heating season to save up to 2 percent on your heating costs during the year Install a programmable thermostat to save up to 20 percent on your heating costs and recover your investment in the first year Replace weather stripping and seals on windows and doors to save 5 percent to 10 percent on your annual heating costs For more tips on no-cost and low-cost ways to save on energy, see our online brochure More Than 100 Ways to Save on Your Energy Bill at For a printed copy, call us at (800) We ll be happy to send you a copy free of charge /07 10M One Energy Plaza Jackson, MI 49201