The Vector Pipeline running into Michigan is scheduled to begin service by the end of the year. This should ease any pipeline capacity constraints. Higher spot market prices will likely translate to higher prices for these customers, depending on contract terms. Most residential customers buy gas from their local utility at rates regulated by the Michigan Public Service Commission. Fuel oil and propane are more commonly used in rural areas where gas is not available.
Natural gas is less expensive than other alternatives.
These figures do not include conversion efficiency. For example, electricity is typically 100 percent efficient and an oil furnace is about 80 percent efficient. The following graph shows prices peaking during the summer because the fixed monthly customer charge is spread across less Mcf sales volume.