How Electric Rates Are Set

Learn what goes into the Consumers Energy electric rates, what you’re paying for, and how are they set.

Michigan Energy Rates


We work to provide reliable and safe energy services at rates as low as possible. We offer a variety of rate options to serve your unique needs. Our electric and natural gas services are regulated by the Michigan Public Service Commission (MPSC).

What Costs Are Included in Rates


Residential Electric Charges


two power poles
Power Supply Charges

Power Supply charges include costs related to creating the electricity and moving the electricity over high voltage transmission lines. The Power Supply costs you pay are directly related to how much electricity you use. This is measured in kilowatt-hours (kWh). Learn more about Power Supply charges by clicking view more.

In some of our rates, you may pay a different amount per kWh of electricity. This will depend on the time of the year and how much energy you use. Here is an example using our most common residential rate:

  • During winter months (October - May) the price for each kWh remains the same, no matter how much you use.

  • During summer months (June -September) there is higher demand, which mostly comes from air conditioner use. This demand makes it more expensive to create or buy electricity. To help reduce energy use during these months, the cost of electricity increases at certain times. This price increase helps keep everyone’s costs down because it helps avoid expensive energy and system upgrades that would otherwise be needed and increase our shared cost.
voltage icon
Energy Delivery Charges

Delivery service charges are related to providing customer services and local energy distribution. To learn more about delivery charges, click view more.

  • System Access: This is a fixed fee of $8.00 per month. This fee covers costs related to meters and billing.

  • Distribution: This charge is related to delivering electricity from the transmission system to your home. This includes necessary equipment, maintenance and operating expenses.

  • Energy Optimization: This monthly per kWh fee supports Energy Efficiency programs that are included in Michigan’s energy laws. These programs help avoid costly investment in new energy sources by reducing household energy use.

  • Other charges on your bill may vary.

Residential Electric Line Items


Renewable Energy Line Items


Other Optional Charges


Ready to Switch?

Whether you're ready to switch rates or have a question, call 800-477-5050.

Call Now

assistant avatarAsk CE Watts
Chat is subject to our privacy policy and terms of use.
Consumers Energy may retain a copy of chat communication.
assistant avatar
Watts