Natural gas bills from 3 Michigan utilities will soar by 2050, report says

Customers at three Michigan utilities face gas bills that will more than double over the next 25 years as the companies spend billions on infrastructure, according to a report from a Massachusetts consulting firm.

The report, completed by DHInfrastructure and released Tuesday by the Citizens Utility Board of Michigan, projects that DTE Energy Co., Consumers Energy, and Port Huron-based SEMCO Energy Gas Co. will invest $57.6 billion to upgrade and expand natural gas infrastructure between now and 2050.

To cover those costs and the costs of investments in the gas system from before 2025, a typical customer’s monthly bill is expected to rise 158%, or from $74.62 to $192.35 at Consumers; 120%, or from $80.38 to $177.22, at DTE; and 106%, or from $62.68 to $129.12 at SEMCO.

“Michigan policymakers need to pay attention to the growing burden that gas utilities are placing on ratepayers,” said Amy Bandyk, the organization’s executive director, in a news release. “This report shows the scale of the problem of increasingly unaffordable gas bills.”

Consumers Energy spokesperson Tracy Wimmer said in an emailed statement that natural gas is the most affordable source of energy available.

“And as a company with a long history of innovation and deep roots in Michigan, we are proud of the work we are doing to aggressively reduce emissions associated with natural gas delivery while also investing in the infrastructure needed to ensure a safe, reliable, cost-effective system,” she said. “Our work is not done, we will continue to make the improvements necessary to deliver the energy Michigan’s homes and businesses need while keeping bills as low as possible.”

DTE and SEMCO did not immediately respond Wednesday to requests for comment.

CUB says the gas infrastructure investments are “incompatible” with the state’s emission goals.

According to the release, the gas system expansion would make it harder for the state to meet its goals of reducing greenhouse gas emissions by 52% of 2005 levels by 2030 and achieving net-zero emissions by 2050. The report finds that meeting the state’s emission reduction targets while maintaining current levels of gas consumption would require a 56% reduction in emissions from all other sectors by 2030, while also requiring all other sectors to achieve negative emissions — using technology to reduce carbon dioxide in the atmosphere — by 2050 to offset gas emissions.

“The findings of the study suggest that continuing (business as usual) investment in gas infrastructure creates risks for both ratepayers and utilities while potentially hindering achievement of state climate goals,” the report states.

The report suggest creating incentives for gas utilities to maintain rather than replace and expand infrastructure, and developing incentives for household electrification amongst other steps.

“The time is now to start planning for how to avoid Michiganders being saddled with an expensive and unsustainable gas system,” Bandyk said.

mjohnson@detroitnews.com

@_myeshajohnson