Michigan Natural Gas, LLC(MNG) Residential

Fixed Rate Gas Customer Choice Contract (Terms & Conditions)

1.  Purchase Agreement: Account holder or legally authorized person (Customer) agrees to purchase its natural gas for twelve (12) months from Michigan Natural Gas, LLC (MNG), a Michigan alternative gas supplier licensed by the Michigan Public Service Commission (MPSC).  Customer understands that the gas under this contract will be delivered to Customer through the Consumers Energy (Consumers) distribution system and that Consumers will remain responsible for gas emergencies, meter reading, and billing (except the Rate under this contract).  Customer authorizes MNG to obtain billing, payment and usage history from Consumers.  After expiration of the initial term, this contract will continue on a month-to-month basis, cancellable at any time without penalty.  Both Customer and MNG agree to abide by the rules and regulations of the Michigan Gas Customer Choice Program established by the MPSC

2.  Customer’s Right to Cancel: If Customer terminates the contract within 30 days from the date of this contract and returns to Consumers, Customer understands that Customer will be required to remain with Consumers for the next 12 months (a $10 fee may apply if Customer has switched suppliers during the previous 12 months). Customers have the right to cancel within 30 days with no penalty from MNG. Following the 30 day period, there will be a $50 cancellation fee.

3.  Billing and Payment:  Customer will continue to receive a monthly bill from Consumers.  In addition to the cost of the gas provided under the terms of this contract, the bill will include but not be limited to Consumers’ delivery and customer charges, taxes and fees (which will be charged by Consumers regardless of whether or not Customer is enrolled in the Michigan Gas Customer Choice program).  Customer agrees to remit payment in full to Consumers per the Michigan Gas Customer Choice Program Rules and service rate.

4.  Residential Gas Rate: 

The Rate will be $3.99/Mcf for the first two months of this contract, and on a variable rate for the remaining term of the 12-month contract. This price will vary month-to-month and will be calculated as a weighted average cost of gas (WACOG), consisting of a supply portfolio of purchases plus all MNG program charges and administration fees. For example, package 1: Package 1: 50 Mcf @ 5.00 ($250); Package 2: 60 Mcf @ 5.12 Mcf ($307.2). The WACOG = $5.065 (($250+307.2)/110)

5. Price Protection: Michigan Natural Gas agrees that customer can elect to switch to any fixed rate currently being offered by MNG at no cost to the customer at any time.

6. Changes in Consumption:  Customer agrees to notify MNG of any material changes in anticipated consumption of natural gas under this contract.

7.  Term: The term of this contract shall commence with the next possible billing cycle by Consumers and shall continue for an initial term of twelve (12) months.  After the initial term, unless terminated by either party, and with at least thirty (30) days notice to Customer by MNG, the contract shall continue on a month-to-month basis and the Customer shall be automatically converted to an MNG variable rate.  Customer understands that there may be delays in the start of the term and agrees not to hold MNG responsible for any such delays. 

8.  Regulatory:  Customer understands that the MPSC may change the rules and regulations of the Michigan Gas Customer Choice Program and in that event, MNG reserves the right to modify this contract with 10 days notice and acceptance by Customer.

9.  Limitation of Liability:  MNG will not be responsible for any type of exemplary, consequential, indirect, punitive or incidental damages whatsoever arising out of or relating to this contract and the remedy in any suit or claim brought against MNG shall be limited to direct actual damages.  MNG makes no warranties or representations other than those expressly made in this contact.

10.  Force Majeure:  MNG will not be responsible for delivering gas to customers in the event of circumstance beyond its control, which include acts of God, acts of terrorism, orders, rules and regulations, or the action of any court or governmental authority. In the case of such an event, MNG may at its sole option reject this contract in whole and re-determine the Rate and continue to provide service to and upon acceptance by the Customer. 11.  Entire Contract:  This contract constitutes the entire contract between Customer and Michigan Natural Gas, LLC and supersedes all prior written and verbal contracts and representations made with respect to the terms and conditions contained herein.

12.  Customer Service:  MNG can be reached at 888-988-6424 during normal business hours or may be reached at info@michigannaturalgasllc.com.  Any written notices may be sent to Customer Service, Michigan Natural Gas, LLC, 2723 South State St Suite 150 PMB 218 Ann Arbor, Michigan 48104.