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Consumers Energy Dives into Mich. Deregulation
In an effort to attract customers in Semco Gas’ pilotderegulation program, Consumers Energy is offering a deal it sayswill save switching residents up to $70 over three years. Consumersis guaranteeing a price of $2.84 per Mcf for three years, comparedto Semco’s price of $2.94 over the same period of time. Consumerswould start delivering gas to new customers April 1, 1999.
Along with Consumers, WPS Energy, Columbia Energy, Semco EnergyService, OGE Energy Resources, Energy America, and Michigan SchoolsEnergy Cooperative are all competing to attract Semco customers.
Consumers will advertise its offer in a variety of ways,including sending representatives to a mall next to Semco’sheadquarters in Port Huron, MI. “We’re going to try a little ofeverything and see what works the best,” said Jeff Holyfield, aConsumers spokesman.
Dave Tyler, a Semco spokesman said that customers should not beconvinced by Consumers’ offer, “They’ve set a price, but then basedtheir $70 savings ad on an assumed load factor. A customer mightnot save that much if he, she, or they don’t use that much gas.”
Semco’s pilot program is a three year experimental project where8,000 of their customers each year are allowed to shop for theirown gas. Although all of Semco’s 210,000 customers are eligible,only the first 8,000 to sign up can pick their suppliers.
Consumers has its own pilot program in its Michigan territories.It is allowing 100,000 people to shop for better deals each yearfor three years. The program began April 1 and the 100,000 limit isnearly full, Consumers said.
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