GRAND RAPIDS, Mich. — Michiganders could pay an extra $500 to heat their home this year.
The Michigan Public Service Commission (MPSC) released its winter energy appraisal, a semiannual assessment of the state’s energy baseline.
According to the analysis, residential natural gas expenditures are expected to increase by $274 compared to last winter. The price paid for propane and heating oil are projected to increase by $75 and $543 respectively.
It found that market volatility and increased demand is contributing to higher prices.
“Utility bills are such a major component of an individual's cost of living every month,” said Tremaine Phillips, MPSC commissioner. “Figuring out a way to make that more stable or to make that more affordable for customers ideally allows for a customer to not have to make those tough decisions in terms of being able to afford to pay a lighting or heating bill or buying medication for that month.”
According to Phillips, the costs depend heavily on the weather, but the war in Ukraine, inflation, the supply chain and workforce issues also play a role.
“Being in a home that is below a temperature that is comfortable can certainly impact that person's ability to work, can impact a child's ability to learn,” said Phillips. “What we see is that homes that are more energy efficient are also healthier homes.”
Jeremy Humphrey, who lives in Hamilton, says he worries whenever he receives a utility bill, especially the one for his electric.
“You see it and you get nervous about everything that's coming up,” said Humphrey. “You're like, ‘Okay, if we make it past this, we will … get out of this hole,’ but it's really hard to get out of that hole.”
The father of six says over the summer he began to pay more for the utility, but figured it was because he had recently moved into a new house and was running the air conditioner. He thought it would go down whenever winter hit, although he says that’s unlikely given his most recent bill.
“I just paid them $260 the other day and now I have another one tomorrow, $250 [that] I have to pay in the next couple of days,” said Humphrey. “Just to have something cost me literally twice more than what it used to cost, it’s, ‘All right, how are we supposed to do this?’ [You’ve] Got the holidays coming up … and I don't have a single Christmas present offer any my kids.”
According to Phillips, utility companies in Michigan must create energy waste programs, which tell people how to cut costs.
He says for example, EWPs may recommend certain appliances, suggest home renovations that improve insulation, or list behaviors which reduce usage, like not using the utility during certain hours.
“Whether you're under financial stress or not, it is best to try and figure out ways to make your household more resilient or make your financial situation more resilient because no matter what year it is, there could always be these kind of 'black swan' events, again, like the Russia-Ukraine conflict, that could kind of turn things on its head,” said Phillips.
MPSC launched an energy assistance website this year. It details, in one place, all of the state and utility company programs available to help people.
Michigan law prevents providers from shutting off service unless it sends a notice to the customer by first-class mail or personally serves the notice at least 10 days before the proposed shutoff date.
There are programs available that prevent shutoffs from happening in the winter, but age and income restrictions apply.
“We’re trying our best to make this as easy as possible for customers,” said Phillips.
To view the new website, click here.
