Introduction to Consumers Energy Module 2 11/30/15

Website Home Page: http://www.consumersenergy.com/ Consumers Energy is a natural gas and electricity provider in Michigan. At this time, Spark offers supply services for Consumers Energy natural gas customers only.

Overview of Consumers Energy Consumers Energy is one of the nation's largest combination utilities, providing electric and natural gas service to nearly 6.5 million of Michigan's 6.8 million residents, in all 68 Lower Peninsula counties Unlike most utilities that charge for gas by therm, Consumers Energy charges by cubic feet, or Mcf. There are 10 therms per Mcf; therefore the gas price is presented as tens of cents rather than in cents (i.e. 44.90 cents per therm versus $4.490 per Mcf) Historical rates per Mcf are posted on the Consumers Energy website so customers can always view the utility’s current gas price A typical Consumers Energy residential customer uses about 112 Mcf of natural gas each year; about 80% of that gas is used for heating

Residential Bill: Front Page Top Half Account Number is not required

Residential Bill: Front Page Bottom Half Consumers Residential Gas Rate Schedule is required Gas POD # is required Gas Cost Recovery charges indicate how much the customer is paying for natural gas supply The chart indicates gas Mcf usage

Residential Bill: Back Page, Service Rate Codes An explanation of service rate codes appears on the back of the bill

Commercial Bill: Front Page Top Half Account Number is not required

Commercial Bill: Front Page Bottom Half Consumers Small Commercial Gas Rate Schedule is required Gas POD # is required Gas Cost Recovery Charge indicates how much the customer is paying for natural gas supply The chart indicates gas Mcf usage

Commercial Bill: Back Page, Service Rate Codes An explanation of commercial service rate codes appears on the back of the bill

Website Explanation of Gas Charges

Website Explanation of Gas Charges (Continued)

Gas Cost Recovery Rates Typically, there are three charges on a Consumers bill including the Gas Cost Recovery charge which covers the cost of the natural gas per Mcf or 10.2 therms 1 therm = .098 Mcf 10.2 therms = 1 Mcf This chart depicts an 18-month review of Consumers Energy’s Gas cost including Consumers current month price per Mcf For Current Gas Rates Visit: http://www.consumersenergy.com/content.aspx?id=1254

Spark Energy Charges Consumers Energy offers a “rate-ready” bill, which means that each month Spark Energy sends the customer’s specific rate and Consumers Energy calculates the charges and prints and sends the bill Consumers Energy customers who take advantage of Budget Billing (called Budget Plan in Consumers) can continue to enjoy this billing program, however Spark Energy does not support Consumers Energy Auto Bill pay program Do not enroll customers on government assistance programs If a Commercial customer has tax exempt status, the customer must send Spark the appropriate tax exempt documents Advise tax exempt customers to fax their tax exemption form to Spark Energy: 1-877-374-8007

Alternative Energy Program: Energy Choice

Consumers Choice Rules about Switching Suppliers Published rules about switching suppliers Customers may switch suppliers once every 12 months of the program year (April – March) for free Each additional switch, customers will pay $10, unless they are switching back to Consumers Energy If they return to buy natural gas from Consumers Energy, they must continue buying from Consumers Energy for at least 12 months If a customer said that they previously used an alternative energy provider and went back to Consumers Energy, find out how long it has been since they returned We will not pursue sales unless the customer is within 30 days of his/her 12-month holding period; Consumers Energy will reject the order if the customer has not been back for a full year!

Coverage Area Consumers Energy serves an area that includes 215 cities and villages. Among the principal cities served are Bay City, Flint, Jackson, Kalamazoo, Lansing, Macomb, Midland, Royal Oak, Saginaw and Warren. More than one-half of the utility’s gas customers are in metro Detroit. Detroit

Michigan Public Service Commission Michigan Public Service Commission (MPSC) monitors the Consumers Energy market and offers many guidelines to approved suppliers in the territory Customers with multiple accounts will need to enroll each account individually.

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