StateRates

Michigan electricity rates

As of May 2026, the average residential electricity rate in Michigan is 22.01 cents per kilowatt-hour, 19.4% above the U.S. average of 18.44¢. That is the 14th highest rate of the 50 states and the District of Columbia.

May 2026 · Residential average · EIA-861M
22.01¢ per kilowatt-hour
Year over year
▲ +8.8% from 20.23¢ in May 2025
Vs. U.S. average
+19.4% U.S. average 18.44¢
National rank
#14 of 51 · #38 cheapest
Supply market
MISO Retail choice limited

Why Michigan pays what it pays

Michigan's wholesale energy costs are unremarkable for MISO. Its rate is high for the region because of what it costs to deliver.

The state has an old distribution network covering a very large area, much of it heavily wooded, and it has some of the worst reliability statistics in the country: long outages and frequent interruptions. The regulator has responded by approving substantial capital spending on tree trimming, pole replacement and circuit automation. That spending recovers through rates, so the reliability problem and the rate problem are two views of the same thing.

Michigan is also mid-transition. Both large utilities have committed to retiring coal earlier than originally planned and replacing it with wind, solar and storage. The retired plants still carry undepreciated book value that regulators generally allow utilities to recover, so ratepayers can end up paying for a closed plant and its replacement at the same time.

Where Michigan power comes from

Michigan generated 128 TWh in 2025, the 11th largest output of any state. Natural gas supplied 41.5% of it. Renewables accounted for 12.3%, against 23.8% nationally, which ranks Michigan #37 of 51.

Net generation by fuel, 2025
  • Natural gas 53 TWh
  • Coal 29 TWh
  • Nuclear 28 TWh
  • Wind 10 TWh
  • Solar 3 TWh
  • Wood and biomass 1 TWh
  • Hydroelectric 1 TWh
  • Other 2 TWh

Source: U.S. Energy Information Administration, Electric Power Operational Data, net generation, all sectors. Net generation across all sectors. Nuclear counts as carbon-free but not renewable, so the two shares differ.

How Michigan compares

Michigan ranks #14 of 51 jurisdictions by residential price, making it the 38th cheapest. Within the East North Central division, 3 of 4 neighbouring states are cheaper.

East North Central division, May 2026
State ¢/kWh YoY Rank
Indiana 18.15 +7.4% #20
Ohio 19.52 +14.2% #18
Wisconsin 19.74 +4.2% #17
Michigan 22.01 +8.8% #14
Illinois 23.85 +28.4% #12

Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State. Data period May 2026. Retrieved 2026-08-19.

What Michigan households actually pay

Average monthly bill $131 -16.0% vs the U.S. average of $155
Average monthly usage 635 kWh · U.S. average 871
Bill rank #37 of 51 · rate rank #14
Bill year over year +8.1% from $121 the year before

Estimate your Michigan bill

Multiply your own usage by the May 2026 state average. Enter the kilowatt-hours from your last statement. This is a supply-and-delivery blended average, not a utility quote.

Estimated monthly bill $0
At the U.S. average $0

Rate used: …. U.S. average 18.44¢/kWh, May 2026. Source: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A.

Heating in Michigan: gas, heat pump or resistance

Residential natural gas in Michigan averaged $10.76 per thousand cubic feet in 2024, about $1.04 per therm, against a national average of $14.50. Put on the same scale as the state's electricity rate, the cost of delivering one million BTU of heat works out as follows.

Gas furnace $11.53 at 90% efficiency
Heat pump $21.50 at a seasonal COP of 3
Electric resistance $64.50 baseboard, wall or electric furnace

In Michigan, gas remains cheaper to run than a heat pump by about $9.97 per million BTU at these assumptions, roughly $598 over a 60 million BTU season. A heat pump can still be the better purchase once cooling, equipment age and incentives are counted, but not on heating cost alone.

Gas price: U.S. Energy Information Administration, Natural Gas Prices, price delivered to residential consumers, 2024. Assumptions are adjustable in the heating cost guide, and every state is compared on the gas price page.

What each Michigan utility charges

The statewide average hides a wide spread. Across the 28 Michigan utilities reporting to the EIA, rates run from 10.12¢ at City of Zeeland to 27.64¢ at Upper Peninsula Power Company . Together they serve 4.4 million residential customers.

Michigan utilities by size, 2024
Utility ¢/kWh Bill kWh Customers
DTE Electric Company 20.13 $123 610 2.1 million
Consumers Energy Co 19.11 $120 628 1.7 million
Great Lakes Energy Coop 19.17 $117 611 120,645
Indiana Michigan Power Co 17.00 $140 821 112,600
City of Lansing 19.78 $102 514 87,301
Upper Peninsula Power Company 27.64 $117 425 47,660
Cloverland Electric Co-op 14.37 $93 648 36,086
Cherryland Electric Coop Inc 16.36 $110 671 35,100
Upper Michigan Energy Resources Corp. 14.76 $83 561 33,252
Presque Isle Elec & Gas Coop 20.99 $94 447 32,446
Midwest Energy Cooperative 19.91 $185 930 29,283
City of Holland 11.68 $68 579 26,608
Tri-County Electric Coop (MI) 18.04 $143 793 23,034
City of Bay City 15.35 $88 576 18,028
City of Marquette 16.96 $86 508 15,036
Alpena Power Co 17.43 $92 527 13,763
City of Grand Haven 14.74 $82 554 13,231
Wyandotte Municipal Serv Comm 16.28 $89 549 11,730
Alger-Delta Coop Electric Assn 23.25 $102 438 9,817
City of Traverse City 12.70 $69 546 9,161
Northern States Power Co 14.66 $85 580 7,579
Coldwater Board of Public Util 14.86 $85 574 6,393
City of Sturgis 14.71 $96 651 6,117
City of Zeeland 10.12 $67 662 6,037
City of Gladstone 15.62 $83 531 2,339

Showing the 25 largest of 28. Utilities with fewer than 1,000 residential customers are not published.

Source: U.S. Energy Information Administration, Form EIA-861 annual electric power industry report, 2024.

Who sells electricity in Michigan

DTE Energy serves southeast Michigan including Detroit. Consumers Energy covers most of the rest of the Lower Peninsula. Both are vertically integrated, generating as well as delivering, which is unusual among high-rate states.

Michigan's retail choice programme is capped at ten per cent of each utility's load, so the great majority of residential customers cannot switch even in principle. The cap was a deliberate policy choice made when the state partially re-regulated in 2008.

Michigan sits in The Midwest. A single wholesale market stretching from Manitoba to the Gulf, containing both the cheapest wind states and some of the highest delivery costs in the country. Read the regional analysis.

What you can actually do about it

With switching largely unavailable, Michigan's practical levers are rate schedule and usage. Both major utilities offer time-of-day residential rates, and for households that can shift laundry, dishwashing and EV charging out of the afternoon peak these are frequently the largest single saving available.

Michigan's income-qualified assistance and the state's Home Heating Credit are administered separately from the utility. A household can qualify for one and not be enrolled in the other.

Closest states by price

These jurisdictions charge within a fraction of a cent of Michigan, which is useful if you are comparing a move or a multi-state operating cost.

Michigan electricity rates: common questions

What is the average electricity rate in Michigan?

The average residential electricity rate in Michigan is 22.01 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is +19.4% relative to the national average of 18.44¢/kWh.

How much is the average monthly electric bill in Michigan?

The average Michigan household paid $131 a month across the twelve months to May 2026, using an average of 635 kWh. That is -16.0% against the U.S. average bill of $155, and it ranks 37th highest of the 51 jurisdictions. Your own bill depends on the size of your home, your heating and cooling equipment and your rate schedule.

Why is the Michigan bill ranking different from its rate ranking?

A bill is the rate multiplied by usage, and usage varies between states more than price does. Michigan ranks #14 of 51 on price but 37th on the actual bill, because households there use about 635 kWh a month against a national average of 871. Climate and heating fuel drive most of that difference.

Have electricity rates in Michigan gone up?

Michigan rates rose 8.8% over the year to May 2026, from 20.23¢ in May 2025 to 22.01¢.

Can I choose my electricity supplier in Michigan?

Retail choice limited. Choice in Michigan is restricted. Availability depends on your utility, your location and in some cases a programme cap.