With the looming deadline of Nov. 27 for Addison Township residents wanting natural gas, Consumers Energy had received 33 applications as of Monday, Nov. 25 out of the 174 application requirement, which equates to 50 percent participation.
‘We’re optimistic still (for that 50 percent),? said Julie Kubacki of Consumers Energy. ‘With the holidays and hunting season I am sure people are concentrating on other things right now, so we’re not alarmed by it at this point.?
If the deadline passes without reaching the 174 application requirement, Kubacki said they will extend the deadline and send out a ‘last chance? letter to allow people the opportunity to get their applications in.
‘I just don’t think people are aware that it’s got to be in (by Nov. 27),? Addison Township Supervisor Bruce Pearson said. ‘I know plenty of people didn’t even get a notice that there was a meeting at the township about this and then never got their package from Consumers either.?
Despite whether the problem lies with Consumers or with the mail system, which Pearson noted they’ve had trouble with as of late, he and other township officials began calling residents on Monday and Tuesday, as well as going door-to-door.
‘I think we’re going to reach (the 50 percent), I just don’t think people understood the deadline and we (have) got to get (to) the people who never got the message,? he said. ‘A lot of people think it’s automatically coming, but it’s not going to unless we get people to respond.?
Why switch to natural gas?
In two informational meeting held at the township on Nov. 7 and Nov. 12, Consumers Project Manager for Addison, John Foley explained three reasons why people should choose natural gas. The first was ‘safe and dependable service.?
Under safe and dependable service, customers have professionals available to them 24/7 in cases of an emergency.
‘If you smell gas whether it’s in your home or outside of your home call our 800 number and we dispatch a service technician (to your house with) no charge for it,? he said. ‘Even if we don’t find a leak there is no charge. We want to make sure we get those gas leaks responded too.?
Through Consumers customers also have available to them regular infrastructure evaluations, public awareness safety programs and ‘Miss Digs.?
‘Before you do any digging on your property landscaping or putting a fence in or a new addition on (call us,)? Foley said. ‘We’ll send out technician and we’ll locate out our gas service and gas main. There is also no charge for that.?
The second reason to choose natural gas is for ‘convenient and reliable fuel supply?
‘We provide a continuous supply of fuel with no longer having to call or order propane,? Foley said. ‘One of the nice advantages along with the price is that you only pay for what you use.?
‘We send a meter reader out every month and they read your meter,? he continued. ‘Occasionally you might get an estimated read, but we try to get an actual read every month.?
The biggest reason to choose natural gas said Foley is for the ‘reduced heating bills.? Currently the state average for propane is roughly $2 per gallon, while natural gas is currently being sold at 77 cents per gallon.
‘The price of propane fluctuates almost as much as the price at the (gas) pumps fluctuates. With natural gas Consumers Energy goes out every day and we’re buying gas on the open market and we’re putting it (in) our storage facilities and what that allows us to do is to blend the cost,? explained Foley. ‘Some days we buy low, some days we buy a little bit high, but we’re able to blend that cost to try to keep prices from spiking.?
Previously natural gas was 85 cents per gallon from April 2012 to March 2013, where it dropped down to the current 77 cents per gallon.
‘We don’t see it increasing any time soon,? he noted.
Using the $2 versus 77 cents per gallon as an example, Foley said, 1,200 gallons per year is about the average use for a family of four who heats their furnace, cook stove, water heater and clothes dryer with propane. In that example, propane would cost $2,400 annually and natural gas would be $924, which would equate to an approximate $1,500 saving per year.
‘For some folks it may be more and some may be less (depending on how much propane you use),? he added.
As for the price to hook-up the main contribution is $51.47 a month, which is spread over a 10 month period with an interest rate of 7.98 percent or customers can choose to pay a lump sum of $4,245.94.
There is also a service connection fee of $200 to connect the customer’s house to the main line.
That $200 connection fee includes up to 299 feet measured from the customer’s property line.
If customers need more footage than that it will cost and extra $9.68 a foot.
Foley said ‘the investment pays for itself and there is still money leftover.?
The approximately $1,500 in savings a year by switching to natural gas breaks down to roughly $125 per month, even after paying the $51.47 monthly contribution cost, customers still will have about $72 in savings.
As for appliance conversion, Foley said most appliances can be converted with the exception of the LP water heaters that may need to be replaced. Also, most existing propane fuel lines can be utilized. Customers will have to contact mechanical contractors for estimates.
For those who may need to replace appliances to be compliant with natural gas, Consumers does offer rebates that will help customers buy Energy Star products and save money month after month.
What do residents think?
Sandra Craddock said she is in favor of natural gas because she loves to cook on a gas stove.
‘Heating with it has got to be better than the propane I am paying for,? she said. ‘To fill my tank it is $4,000 for a 1,000 gallon tank. If I had the gas it would be less money.?
Lisa Taddiken said she definitely wants natural gas.
‘It looks like going forward it’s a good idea,? she said. ‘We tried two or three times with Consumers out of Pontiac and they kept dropping the ball, so I think this will be handled a lot better and we’ll be able to do it.?
Don Clark said he would like to have natural gas, but he has ‘so many unique situations? at his house that he doesn’t think it will work for him.
‘I think I’m going to have 400 to 500 feet of (extra line) that has to be laid and (I have) a problem with two regulators,? Clark said. ‘It’s not nearly as easy as a changeover as he makes it sound it’s going to be – It’s hard to tell the exact cost if you don’t know how many feet you’re going to have to pay for and we know it will be more than $299.
His wife Carol agreed.
‘I would do it if it made sense from a cost standpoint,? she said. ‘I’m just not sure if it’s going to make sense in our situation.?
Jim Rowe thinks it’s a great thing, but like the Clarks he is undecided.
‘I don’t know if it’s perfect for me or not, but it’s a great option to have available to you,? he said.
For more information residents may call Julie Kubacki of Consumers at 969-791-5651, visit consumersenergy.com or call township offices at 248-628-5409