Energy Charges Explained

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Understanding Electric Rates

There are two types of charges on your electric bill.

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Understanding Natural Gas Rates

There are three types of charges on your natural gas bill.

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What Your Rate Includes

The electric and natural gas services we deliver are regulated by the Michigan Public Service Commission (MPSC). In general, rates include three costs:

  • Energy generation and delivery: The operation of power plants, electric distribution (poles and wires) and natural gas pipelines, along with upgrades that help us stay current with environmental regulations.
  • Operating expenses: Fuel for power plants (such as coal and natural gas), the cost of electricity or natural gas we purchase from the energy market, and activities related to maintenance, repair, service and billing.
  • Michigan energy programs: Expenses that support areas such as energy efficiency and renewable energy.

Michigan Energy Rates

We work to provide reliable, safe and economical energy services and offer a variety of rate options to serve your unique needs. Like all Michigan utilities, the electric and natural gas services we deliver are regulated by the Michigan Public Service Commission (MPSC).

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How We're Keeping Costs Down

We’re working together with businesses like yours to manage costs.

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No Hidden Charges

Your rate is the cost of energy, delivery and services.

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Electric Charges

Your business has two types of charges on its electric bill, power supply and delivery service.

Your power supply charges include the costs to create and move the electricity over high-voltage transmission lines.

Your energy costs are directly related to the amount of electricity you use, measured in Kilowatts (kW) and/or kilowatt-hours (kWh), and the time of year when you use it. For example, the price may be lower during the winter months (October – May) because demand is usually lower.

During summer months (June -September), the price may increase because demand is usually higher. The increased demand for electricity makes it more expensive to create or buy. Higher summer prices encourage people to limit their use, helping minimize everyone’s costs.

Delivery service charges are the costs to provide you with services and local energy distribution. They include:

  • System Access: A fixed cost that covers metering and billing.
  • Distribution: An adjusted cost based on how much electricity you use. This includes electricity delivery from the transmission system to your business and the necessary equipment, maintenance and operating expenses.
  • Energy Optimization: As part of Michigan’s energy laws, a monthly per meter surcharge is added to support Energy Efficiency programs. These programs help avoid costly investments in new energy sources by reducing energy use.
  • Other charges: These may vary depending on your business and energy use.

Natural Gas Charges

Your business has three types of charges on its natural gas bill: gas cost recovery, distribution and customer costs.

  • Distribution: The charges include operation and maintenance for pipelines and storage systems.
  • Customer Costs: The charges include customer-related activities such as reading meters, billing and customer service.
  • Gas Cost Recovery: The cost of natural gas is measured in units of one thousand cubic feet (Mcf). The price we charge for gas is the price we pay for it, including the cost of providing the gas.

The following is an 18-month review of the Gas Cost Recovery charges, including our current month price per Mcf.

Month/Year Price/Mcf - Gas Cost Recovery
December 2017 $3.1168
November 2017 $3.1261
October 2017 $3.1699
September 2017 $3.1023
August 2017 $3.1086
July 2017 $3.1634
June 2017 $3.3153
May 2017 $3.4486
April 2017 $3.1910
March 2017 $2.9951
February 2017 $2.9951
January 2017 $3.0357
December 2016 $2.8734
November 2016 $3.0357
October 2016 $2.9546
September 2016 $2.9951
August 2016 $3.0165
July 2016 $2.8507

working together to keep costs down

How We Reduce Costs

We reduce your costs by:
  • Buying natural gas during the summer when it generally costs less
  • Reducing power plant fuel costs
  • Recycling more than 20 major types of waste
  • Clearing branches and other items away from power lines
  • Using a variety of electric generation facilities and running our most efficient units more often
  • Minimizing your downtime costs during outages
  • Updating systems to be more efficient
  • Installing upgraded meters, a way to help us provide more efficient service to our customers

How You Can Reduce Costs

Keep your energy costs low by taking a little time to: