Michigan Attorney General Dana Nessel has issued a Consumer Alert regarding Alternative Gas Suppliers (AGSs) following numerous complaints about deceptive practices. Since the beginning of 2024, over 125 complaints have been filed with the Michigan Public Service Commission (MPSC) concerning AGSs.
AGSs are third-party companies authorized to sell natural gas to residents in the Consumers Energy, DTE, SEMCO, or Michigan Gas Utilities service territories. While these suppliers can offer competitive rates, AGS rates are not regulated by the MPSC, unlike rates from local utility companies.
“It is crucial that consumers understand the terms before entering into any AGS contract,” Nessel said. “Carefully examine pricing and be wary of introductory costs that might hide future increases. Take your time, read everything thoroughly, and remember, you are not obligated to provide any information to AGS representatives.”
All AGSs must be licensed by the MPSC. If a consumer encounters a company that is not licensed, the Attorney General advises them not to engage their services and to file a complaint with the MPSC.
Consumers interested in AGS services should:
- Ask AGS representatives to include details on how savings are calculated, the contract length, the per unit rate, and any associated fees;
- Understand the duration of any promotional pricing, the process and fees for switching AGSs or returning to the local utility, and contract terms after promotional periods expire;
- Be aware of any cancellation fees and how the process works; and
- Check eligibility for budget plan customers and those with past due balances.
If a consumer believes an AGS has engaged in a misleading or deceptive promotion leading them to sign a contract, the Attorney General encourages them to file a complaint with the MPSC online or by calling 1-800-292-9555. Consumers considering an AGS can learn more at the MPSC’s Natural Gas Customer Choice webpage, which includes information on licensed suppliers in each utility’s service territory. The Attorney General also encourages consumers to visit the MPSC’s Compare MI Gas website, which has answers to frequently asked questions about gas customer choice.
###