Michigan Energy Rates
What Costs are Included in Rates
Generally speaking, rates are divided into three parts:
Major investments that generate and deliver energy, including power plants, electric distribution (poles and wires) and natural gas pipelines. This includes upgrades to stay current with environmental regulations.
Operating expenses including 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 supporting areas such as energy efficiency and renewable energy.
Residential Electric Charges
As a residential customer, you have two types of charges on your electric bill: Power Supply and Delivery Service.
Power Supply charges include costs associated with creating the electricity and moving the electricity over high voltage transmission lines. The Power Supply costs you pay are directly related to the amount of electricity you use, which is measured in kilowatt-hours (kWh).
In some of our rates, you may pay a different amount per kWh of electricity depending on the time of the year and the amount of energy you use. Here's an example using our most common residential rate:
Delivery Service charges are associated with providing customer services and local energy distribution.
Whether you're ready to switch rates or have a question, call 800-477-5050.Call Now