The summer energy appraisal provides a highlighted overview regarding the projected prices of energy in Michigan over the winter months.
Contact: Judy Palnau
Agency: Michigan Public Service Commission
May 23, 2014 – The Michigan Public Service Commission (MPSC) today released the “Michigan Energy Appraisal: Summer 2014.”
The demand for energy in Michigan is projected to increase across all sectors compared to last year, with the majority of growth occurring due to weather related factors. The first three months of 2014 were 21 percent colder than normal which contributed to higher consumption of electricity, natural gas, propane and heating oil. Assuming normal weather this summer, demand for electricity and natural gas (electric power sector) are expected to be higher than the same period last year, which was 12 percent cooler than normal (June – August). On-highway diesel usage is also expected to grow, due largely to an increase in industrial production and trucking demand. In contrast, motor gasoline consumption is expected to see only slight growth as increased vehicle fuel efficiency and sustained high gasoline prices continue to place downward pressure on demand.
Electricity – Assuming normal weather, Michigan’s total electric sales are projected to increase by 1.9 percent in 2014. Increases are driven primarily by the residential sector with first quarter demand (January – March) well above last year, due in large part to heating demand. Over the summer months (June – August), aggregate electricity sales are expected to be higher than last year, which was 12 percent cooler than normal. Given the anticipated demand and reserve margins, there should be an adequate supply of electricity over the summer.
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