LANSING – Between an expected colder winter and increasing commercial and industrial activity, power use is expected to be up in the state over the coming winter, but recent lower use and increased production capacity will mean lower prices per unit, the Public Service Commission said in releasing its annual energy appraisal Friday.
Overall, the PSC is expecting residents to see their heating bills increase this year, but largely because they will use more energy.
“Normal weather means increased consumption of heating fuels compared to last winter, which was 20 percent below normal,” the report said.
For the 77 percent of households using natural gas, the price per thousand cubic feet is expected to be 7 percent less than last year because gas companies have more than average quantities stored.
Prices for propane, which accounts for 9 percent of household heating, are down about 20 percent from last winter, again because of more than average supplies stored.
Electric demand is judged on a calendar year basis, and overall demand is expected to be up 1.4 percent for 2012 over the prior year. But unit prices for electricity are up, 4.7 percent for Consumers Energy and 8.8 percent for DTE, the report said. Some 8 percent of households heat with electricity.
Heating oil prices are also expected to rise, about 5 percent, for the 2 percent of households that use the fuel. But increased demand is expected to push actual heating bills up 31 percent during the winter, the report said.
Higher gasoline prices have pushed purchases of the fuel down a projected 0.3 percent for calendar 2012 from the year prior, but the PSC said indications are those prices are falling again as crude oil prices drop and refineries begin making less costly fuel for the winter.
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