Jo Jo
Bay City,#2UPDATE Employee
Sat, March 29, 2008
In response to Isis's comment, "73 BUX FOR 7 CCF'S MORE" THIS IS BLATANTLY FALSE. First, the most that a customer's rate could have increased would have been 50%, based upon DTE Energy/MichCon's lowest recent rate of $0.700, and Universal's five-year rate of $1.049. However, even a 50% increase would be less than the average increase for all gas prices in metro Detroit over the last five years. Universal simply replaces your Gas Cost Recovery factor with their protected rate. All other charges remain the same (monthly customer service charge, distribution charge and UETM surcharge). In February 2008, DTE Energy/MichCon charged $0.700 (per Ccf). Universal would have replaced that rate with $1.049. So, the difference between the rates for 141 Ccfs would only be $49, not $70. (Keep in mind that DTE Energy/MichCon rates will be $1.005 in April 2008.) In response to Isis's comment, "For all the UG&E execs rebuttals saying it's a small increase that will pay off in the long run are LYING TO YOU." Isis, what evidence do you have that you will not save money with the program? Did you know gas prices are on the rise again? Here are gas prices for DTE Energy/MichCon for the last three months (per Ccf): February 2008 $0.70000 March 2008 $0.84900 (14.900 cent increase = 21.3% increase) April 2008 $1.00500 (15.600 cent increase = 18.4% increase) May 2008 ??? Gas prices have gone up to $1.005, that's a $0.305 increase (44%) over the past few months. What do you think those rates will be five years from now? If you simply continue the trend of gas prices from the past five years, then five years from now DTE Energy/MichCon rates would be around $2.442 per Ccf. Your protected rate is $1.049 per Ccf. Doesn't that rate look favorable right now? Wouldn't you want to be paying $1.049 per Ccf in the year 2013?!