How natural gas prices are set

The price you pay covers all of the costs necessary to provide safe, clean and reliable natural gas service. The Michigan Public Service Commission (MPSC) regulates and controls the prices we charge to ensure you get the fairest price possible.

Our prices cover many aspects of providing natural gas service, including infrastructure maintenance and improvements, meter reading, monthly bill preparation and making environmentally-friendly enhancements to our infrastructure.

Controlling costs is also an important part of keeping energy affordable, so DTE Energy strives to reduce waste and streamline processes. We purchase large quantities of natural gas during the summer when prices and demand are low, store the supply until the winter when customer demand is higher, and then pass the savings on to you. This allows us to even out the seasonal ups and downs of natural gas pricing.

We continue to explore new technology to improve our service, efficiency and enhance your customer experience. One great example is the high-tech advanced meters that we are installing across Michigan.

 

Factors that impact natural gas pricing

Gas Cost Recovery (GCR) is the price you pay for natural gas. The GCR may change from month to month, but the price you pay is the same price we pay. We do not make a profit on natural gas. And even though the price can change, our pricing is regulated by the Michigan Public Service Commission (MPSC).

As a matter of fact, we buy most of the gas supplies we need in advance, to lock in those savings as well. By the time natural gas reaches your home, there’s a good chance it was purchased two years ago.

External Factors
Market Costs

The cost of each unit of natural gas fluctuates from month to month, but we, along with the MPSC, do all we can to keep it as low as possible. Any savings we can create are passed on directly to you.

Usage

The natural gas you consume is the largest portion of your bill. Your bill equals the cost of natural gas (GCR) times your individual usage (Ccf). Even if natural gas prices are decreasing, your bill could increase if you use more natural gas than usual.

Weather

When extreme temperatures hit, it’s normal to use high quantities of natural gas to stay comfortable. Even a few days of extreme temperatures can impact your bill.

 

Take control of your natural gas bills

Apart from the price of each unit (Ccf) of natural gas, your bill will fluctuate according to your usage pattern. We want to help you take control of your energy use and reduce your costs as much as possible. Visit our Save Energy  section to find more information on rebates, energy management tools and improving efficiency.

  • DTE Insight App
    Real-time energy awareness is here. Download the DTE Insight App to access your energy usage data to have the understanding to gain control of your energy usage. Customers with an Advanced meter can discover and improve their home energy use.

  • Billing Options
    Many options are available to help balance your budget and manage your energy bill, such as AutoPay, BudgetWise Billing®, eBill Paperless Billing, Flexible Due Date, Shutoff Protection Plan, Payment Assistance, Reduced Billing Frequency, and Low Income assistance.

  • Payment Options
    Many options are available to conveniently pay your energy bill, including DTE Energy Mobile app, DTE Payment Kiosks, customer offices, online, our automated call system and standard mail.

 

What do the charges on my DTE bill mean?
Monthly Customer Service Charge: A fixed “non-gas” monthly charge that varies by type of service. It includes the cost to maintain and read meters, maintain the natural gas distribution system and administer billing. The customer charge applies each month, to every customer who can take service on our system, regardless of usage. If there is zero usage, the customer charge still applies.
Gas Distribution Charge: The price to deliver the natural gas you use to your home. This charge is based on the amount of gas you use during the billing period.
Energy Optimization: A surcharge that allows DTE to develop and offer an Energy Optimization program that provides rebates, incentives and energy efficiency education to our customers. This credit/surcharge is based on the amount of natural gas you use during the billing period.
Gas Cost Recovery (GCR): The price you pay for the natural gas that you used. The GCR rate can change monthly and is the largest portion of a typical heating bill. It's based on costs incurred by DTE to purchase gas supply and is the same price we pay. Learn more about this charge below. Note: If you participate in the Gas Customer Choice (GCC) program, the gas component on your bill is represented by the GCC supplier charge. DTE simply bills for this charge, collects payment and reimburses the GCC supplier. Gas choice customers should contact their alternative gas supplier with questions about their cost of gas.
Monthly U-17999 IRM Surcharge: The Infrastructure Recovery Mechanism (IRM) is a surcharge that covers the cost to provide safe, reliable natural gas service to our customers. It allows DTE to continue to replace old pipe with new to ensure a safe natural gas pipeline.
Reservation Charge: The Reservation Charge allows for the recovery of costs related to the assets necessary for DTE Energy to ensure reliable natural gas supply. The company must serve as the "supplier of last resort" as mandated by the Michigan Public Service Commission in case No. U-17131.

 

Residential natural gas pricing options

Because the Gas Cost Recovery (GCR) rate can fluctuate on a monthly basis, the most current listing of natural gas pricing options can be found in this Gas Rates document*.

Sample Bill: DTE Natural Gas Residential Pricing - A
Monthly Customer Service Charge $ 11.25
Monthly U-17999 IRM Surcharge $ 0.35
Gas Distribution Charge 100 Ccf @ 0.32707 $ 32.71
Energy Optimization 100 Ccf @ 0.01450 $ 1.45
Gas Cost Recovery 100 Ccf @ 0.31600 $ 31.60
Reservation Charge 100 Ccf @ 0.03400 $ 3.40
Sample Bill- DTE Natural Gas Residential Multi-Family Dwelling Meter class I Sample Pricing- 2A
Monthly Customer Service Charge $ 11.25
Monthly U-17999 IRM Surcharge $ 1.87
Gas Distribution Charge 100 Ccf @ 0.32707 $ 32.71
Reservation Charge 100 Ccf @ 0.03400 $ 3.40
Energy Optimization 100 Ccf @ 0.01326 $ 1.33
Gas cost Recovery 100 Ccf @ 0.31600 $ 31.60
Sample Bill- DTE Natural Gas Residential Multi-Family Dwelling Meter class II Sample Pricing- 2A
Monthly Customer Service Charge $ 31.00
Monthly U-17999 IRM Surcharge $ 1.87
Gas Distribution Charge 100 Ccf @ 0.32707 $ 32.71
Reservation Charge 100 Ccf @ 0.03400 $ 3.40
Energy Optimization 100 Ccf @ 0.01326 $ 1.33
Gas cost Recovery 100 Ccf @ 0.31600 $ 31.60

We measure and sell natural gas to our customers by measuring the volume in cubic feet. One cubic foot of natural gas would fit in a cube, 12 inches square and 12 inches high. For ease in billing, we measure and price natural gas in units of 100 cubic feet or Ccf, which is the unit of measure you see on your natural gas bill. If you use 1,000 cubic feet of natural gas in a billing period, you will actually see your usage as 10 Ccf on your bill.

DTE Gas Rate Book
DTE Natural Gas Rate Book

DTE Gas is regulated by the Michigan Public Service Commission (MPSC). The company's rules, regulations and rates are periodically updated as a result of orders issued by the MPSC. There may be a time lag of up to 30 days from the date of the issuance of an order until modified tariff pages are actually filed with and approved by the MPSC, and incorporated on this site.

Natural Gas Pricing Options Bill Insert (PDF)

View the latest bill insert for more information on residential natural gas rates.

Standard Forms

Standard Forms(PDF)

The standard forms document includes applications, agreements and contracts for natural gas service, natural gas main extensions and for survey and maintenance of customer-owned natural gas facilities in centrally metered locations.

 

More
Business natural gas pricing options

The majority of our business customers are billed under the GS-1 and GS-2 pricing options. Other pricing options are available for schools and for large-use customers.

Sample Bill: DTE Natural Gas Business Pricing for GS-1
Monthly Customer Service Charge $ 31.00
Monthly U-17999 IRM Surcharge $ 1.27
Gas Distribution Charge 500 Ccf @ 0.28473 $ 142.37
Energy Optimization 500 Ccf @ 0.01326 $ 6.63
Gas Cost Recovery 500 Ccf @ 0.31600 $ 158.00
Reservation Charge 500 Ccf @ 0.03400 $ 17.00
Sample Bill: DTE Natural Gas Business Pricing for GS-2 (less than 100,000 Mcf)
Monthly Customer Service Charge $ 590.00
Monthly U-17999 IRM Surcharge $ 1.27
Gas Distribution Charge 1,500 Ccf @ 0.23682 $ 355.23
Energy Optimization 1,500 Ccf @ 0.01326 $ 19.89
Gas Cost Recovery 1,500 Ccf @ 0.31600 $ 474.00
Reservation Charge 1,500 Ccf @ 0.03400 $ 51.00


DTE Gas Rate Book

DTE Natural Gas Rate Book

DTE Gas is regulated by the Michigan Public Service Commission (MPSC). The company's rules, regulations and rates are periodically updated as a result of orders issued by the MPSC. There may be a time lag of up to 30 days from the date of the issuance of an order until modified tariff pages are actually filed with and approved by the MPSC, and incorporated on this site.

Natural Gas Pricing Options Bill Insert (PDF)

 

Commercial and industrial natural gas

DTE Energy account managers can assist large commercial, industrial, manufacturing and institutional customers determine the most economical service to satisfy their natural gas requirements. To contact an account manager, please email us at gasaccountmgr@dteenergy.com

End User Transportation
This service is typically utilized by large manufacturing and industrial firms, electric power generators, government institutions, universities, schools and hospitals wanting to purchase their natural gas through an alternative supplier. DTE provides natural gas transportation and storage service and bills only for those applicable charges.

End User Transportation
Service Type Small Volume Transport Large Volume Transport X-Large Volume Transport
Schedule No. ST LT XLT
Monthly Service Charge $2,330 $4,250 $10,500
Distribution Charge ($/Ccf) 2$0.09 2$0.07 2$0.06
Monthly U-17999 IRM Surcharge $57.46 $269.07 $1767.24
Gas-In-Kind 1.41% for rates ST, LT and XLT, 1.00% for rate XXLT
Cost of Gas Alternative Supplier

Gas Sales
Service customers can purchase their natural gas through DTE's Gas Cost Recovery (GCR) mechanism or through the Gas Customer Choice (GCC) program. These customers include smaller commercial businesses, schools, hospitals and housing complexes.

  1. The Distribution Charge for these rate schedules also includes the Energy Optimization Surcharge effective 1/01/2017 through 12/31/2017 as approved by the MPSC's 11/22/2016 Order.
  2. The Distribution Charge for these rate schedules also includes an Energy Optimization Surcharge or Credit effective 1/01/2017 through 12/31/2017 as approved by the MPSC's 11/22/2016 Order.

Volume Breakpoints (100 Cubic Feet - Ccf/year)
The volume breakpoints listed below provide a general guideline for choosing the most economical service. Specific rate schedule requirements, multiple meters and other factors can influence selecting the natural gas service that is best suited for your business needs.

Commercial and Industrial
Rate GS-1 to Rate GS-2 140,000
Rate GS-1 to ST 150,000
ST to LT 1,000,000
LT to XLT 7,000,000
School
Rate GS-1 to Rate S 24,000
Rate S to ST 290,000
Multi-Family Dwelling
Rate 2A to ST 160,000

Related Links
Current Natural Gas Rates
Rate Book & Forms

 

'