LANSING – Energy supplies in Michigan will be adequate to meet anticipated demand this winter assuming a return to normal conditions, and thanks to a mild summer projected to show a decrease in natural gas and electricity usage in 2013, according to the Winter Energy Appraisal released on Wednesday by the Public Service Commission.

Michigan’s total electricity sales in 2013 are expected to decrease by 0.5 percent from 2012 sales due to lower demand in the residential and commercial sectors over the summer, the report noted. But that is projected to be counterbalanced by increased usage among industrial customers.

Total natural gas sales are projected to decrease as well, 3.8 percent from 2012 sales. And the weighted average price for residential customers of all regulated utilities in the state over the winter season (between November and March) is projected to represent a 6.2 percent decrease in natural gas prices from last year.

There was also good news for the propane industry in that the upcoming heating season is projected to see an increase in propane use of 5.7 percent over last year, again assuming normal weather (and not the warmer winter Michigan had last year).

The report said 77 percent of households in Michigan heat with natural gas, 9 percent use propane, 8 percent use electricity, 2 percent use heating oil and 4 percent use other fuels.

Of those other sources, the PSC report projected West Texas Intermediate crude oil prices to average $101 per barrel during the last quarter of the year, and then $96 per barrel in 2014. Domestic crude oil production is expected to continue its upward trajectory due in part to increased oil drilling, the report said.

Finally, motor gasoline sales in Michigan are projected to decrease by 0.7 percent in 2013 due primarily to higher fuel efficiency among the vehicle fleet and changes in consumer behavior resulting from sustained high gas prices, the report indicated. With the exception of 2010, gasoline sales in Michigan have decreased every year since 2004, resulting in a 14.5 percent net reduction in demand.

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