19.4%above
the national average of 18.44¢/kWh
Electricity Rates in Michigan (May 2026)
The average residential rate is 22.01¢/kWh — that's about $115/month for a typical household.
#38out of 51 states (1 = cheapest)
Source: U.S. Energy Information Administration. Data as of May 2026.
$115/mo
based on 524 kWh average monthly usage
8.8%up
over the past 12 months
Rates by Sector
| Sector | Rate (¢/kWh) | vs National | Avg Monthly Usage | Avg Monthly Bill |
|---|---|---|---|---|
| Residential | 22.01¢/kWh | +19.4% | 524 kWh | $115 |
| Commercial | 16.09¢/kWh | — | 5,127 kWh | $825 |
| Industrial | 9.43¢/kWh | — | 410,781 kWh | $38,737 |
| National Average | 18.44¢/kWh | — | 736 kWh | $136 |
Electricity Providers in Michigan
Type | Service | Service Area | ||||
|---|---|---|---|---|---|---|
Allegan, Antrim, Barry, Charlevoix, Cheboygan, Clare, Crawford, Emmet, Grand Traverse, Kalkaska, Kent, Lake, Manistee, Mason, Mecosta, Missaukee, Montcalm, Montmorency, Muskegon, Newaygo, Oceana, Osceola, Oscoda, Otsego, Ottawa, Wexford+23 moreless | ||||||
Clinton, Eaton, Ingham | ||||||
Chippewa, Delta, Luce, Mackinac, Schoolcraft+2 moreless | ||||||
Benzie, Grand Traverse, Kalkaska, Leelanau, Manistee, Wexford+3 moreless | ||||||
Alcona, Alpena, Cheboygan, Emmet, Mackinac, Montmorency, Oscoda, Otsego, Presque Isle+6 moreless | ||||||
Berrien, Cass, Kalamazoo, Lenawee, Monroe, St Joseph, Van Buren+4 moreless | ||||||
Allegan, Ottawa | ||||||
Barry, Clare, Clinton, Eaton, Gratiot, Ingham, Ionia, Isabella, Jackson, Mecosta, Montcalm, Osceola, Saginaw+10 moreless | ||||||
Bay | ||||||
Marquette |
Utility data from EIA Form 861, 2024
How Deregulated Electricity Works in Michigan
Michigan deregulated its electricity market in 2000. The system operates with three components: power companies generate electricity (generation), utilities maintain high-voltage lines (transmission), and your local utility (DTE Electric Company, Consumers Energy Co - (MI), Indiana Michigan Power Co, Upper Peninsula Power Company, Upper Michigan Energy Resources Corp., Alpena Power Co, Northern States Power Co) delivers electricity to your home (distribution).
Residential electricity choice in Michigan is limited; most households receive default service through their local utility at a regulated rate.
How to Switch Electricity Companies in Michigan
- 1Review your current contract terms and check for early termination fees
- 2Compare available rates from 25 suppliers serving your area
- 3Choose a plan and sign a Letter of Authorization
- 4Your new supplier handles the transfer with your utility (DTE Electric Company, Consumers Energy Co - (MI), Indiana Michigan Power Co, Upper Peninsula Power Company, Upper Michigan Energy Resources Corp., Alpena Power Co, Northern States Power Co) — your service is not interrupted
- 5Your new rate takes effect in the next billing cycle
When is the Best Time to Switch Energy Providers in Michigan
The best times to switch providers in Michigan typically include:
- Before peak seasons (summer) when you can lock in lower rates
- When your current contract is nearing expiration
- During off-peak months when providers offer competitive promotions
- After comparing rates during market downturns
Types of Electricity Plans in Michigan
Fixed-rate plans
Consistent rates throughout your contract term, making budgeting easier. Early termination fees may apply.
Green energy plans
Power your home with 100% renewable sources while supporting clean energy goals.
Time-of-use plans
Different rates based on when you use electricity, with lower costs during off-peak hours.
Variable-rate / prepaid plans
Flexibility without long-term commitments, though rates may fluctuate monthly based on market conditions.
Power Outages in Michigan
615 customers currently without power in Michigan
Frequently Asked Questions
The average residential electricity rate in Michigan is 22.01¢ per kWh. Commercial customers pay an average of 16.09¢ per kWh and industrial customers pay 9.43¢ per kWh.