MPSC predicts fall in electricity sales, coupled with higher natural gas sales and pump prices
In its energy appraisal for summer 2019, the Michigan Public Service Commission (MPSC) predicts a drop in sales of electricity, higher natural gas consumption, and a jump in gasoline prices at the pump.
Electricity sales could drop to 102.9 thousand gigawatt hours, down from 103.8 thousand gigawatt hours last year. Of the various markets involved, only industrial is expected to see gains and only a modest 0.3 percent there. This could change if extreme weather increases demand, but otherwise, the MPSC’s prediction stands.
Natural gas demand is expected to rise by 1.4 percent this year. Forecasts of higher summer temperatures are keeping the demand up, though the year’s figures are coupled with increased use from the January polar vortex. Despite the increased need, however, consumers likely won’t face the same burden they might have in previous days. Based on current prices, the MPSC figures the average residential bill would be around $20 lower than it would have been last year thanks to drops in market price, leaving them at around $754.
Demand for fuel is expected to rise for the seventh year in a row, to an average of $2.83 per gallon through September. Diesel fuel prices should come to around $3.20. Problems in the Middle East and OPEC production curtailments have been specifically cited as factors likely to make crude oil prices continue to rise, while petroleum prices and supplies should remain steady.
