LANSING, Mich. (AP) - A state report shows demand for natural gas and electricity is projected to drop following a summer that was 12 percent cooler than normal. The Michigan Public Service Commission's annual energy appraisal also shows demand at the gas pump should decrease with more fuel-efficient vehicles on the road and sustained high prices. The report was released Wednesday. It reviews and projects prices and the availability of energy across the state for the winter months. Natural gas sales are projected to drop 3.8 percent from last year. Electricity sales are expected to decrease by a half-percent if weather conditions are normal. Increased auto sector production should cause a 1-percent rise in industrial electricity usage. Natural gas is used to heat about 77 percent of Michigan households.