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Michigan Electricity Information

Michigan allows for partial electricity deregulation, giving customers the option to choose an alternative electricity supplier while local utilities like DTE Energy and Consumers Energy continue to handle delivery and grid reliability. What sets Michigan apart is that participation is capped, only up to 10% of a utility’s load can switch to competitive suppliers. This limit makes the state’s system very different from fully deregulated markets like Texas or Pennsylvania, where most consumers can shop freely. For Michigan households and businesses, it means electricity choice is available but not universal, offering some flexibility without opening the door to the full volatility, or full competition, seen in other states.

Michigan’s “Healthy Climate” Goals

Michigan is currently transitioning its energy grid under the MI Healthy Climate Plan. Understanding these goals can help you make sense of changes to your bill or new renewable energy options offered by your provider.

Renewable Energy Standard: The state has set a target to generate 60% of its electricity from renewable resources by 2030.
Carbon Neutrality: The ultimate goal is for the state to achieve economy-wide carbon neutrality by 2050.
What This Means for You: Expect to see more incentives for “electrification”, such as rebates for installing electric heat pumps or EV chargers, and more programs allowing you to subscribe to community solar gardens.

Michigan Electricity Generation

Michigan generates electricity from a diverse mix of energy sources, including natural gas, nuclear, coal, and a growing share of renewables like wind and solar. While coal used to dominate, natural gas has taken the lead, and wind power is expanding, especially in the Lower Peninsula. The state also benefits from nuclear energy, which provides steady, carbon-free power.

Michigan’s electricity demand is shaped by its cold winters and strong industrial sector, leading to high energy consumption. The transition from coal to cleaner sources has helped reduce emissions, but there’s still work to do. With investments in renewables, energy efficiency, and grid modernization, Michigan is moving toward a cleaner and more sustainable energy future.

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Electricity Production

Primary Source

Natural Gas

Total Generation: 120,656,625 MWh
Ranks 11th Highest in the U.S.
Average Price: 20.85¢ /kWh
Ranks 38th Cheapest in the U.S.
Average Electric Bill: $122.42
Ranks 15th Cheapest in the U.S.

Electricity Production By Source

Emissions From Electricity Generation

Carbon Dioxide Emissions Rank

7th Highest

50,018 TMT

Sulfer Dioxide Emissions Rank

10th Highest

34,498 tn

Nitrogen Oxide Emissions Rank

6th Highest

47,191 tn

Renewable Electricity Generation

Renewable Production Rank

23rd Highest

10,956,453 MWh
9.08% of Total Production

Source U.S. Energy Information Administration (EIA) Based on data from 2023

Energy Usage in Michigan

Energy Usage Per Capita Rank

24th Lowest

Average Per Person: 270 million BTU

Michigan’s electricity consumption is strongly influenced by its Upper Midwest climate, which brings long, cold winters and warm, humid summers. Heating demand drives up energy use during the winter, though much of it comes from natural gas rather than electricity, while air conditioning creates high loads in the summer months. Beyond seasonal weather, Michigan’s large industrial base, including automotive manufacturing, adds significantly to overall electricity demand. This combination of harsh winters, hot summers, and industrial activity keeps Michigan’s electricity use consistently high compared to many other states.

Municipal Utilities in Michigan

While most cities, towns, and villages throughout the state of Michigan offer municipal essential services like providing clean water, sewage treatment and dealing with waste and storm water, some also offer other services like electricity, natural gas, sanitation or recycling. In Michigan, 42 cities offer municipal electricity utility services to their residents.

Largest Electric Companies in Michigan

The rest of Michigan receives electric utility service from one of many primary providers. Here’s a list of some of the larger providers that might be available to your home:

Michigan Natural Gas Information

Natural gas is central to Michigan’s energy mix, serving as the primary heating fuel for most households and playing a major role in electricity generation. The state’s Upper Midwest climate, with long, frigid winters and warm, humid summers, makes natural gas especially important for residential and commercial heating during the colder months. While summer demand is lower, gas-fired power plants help meet electricity needs during peak cooling periods. This strong seasonal swing in consumption makes natural gas a cornerstone of Michigan’s energy reliability.

Unlike many states where natural gas remains fully regulated, Michigan gives customers the ability to choose their supplier. Utilities like DTE Gas and Consumers Energy still manage safe delivery through their pipelines, but the supply portion of the bill can come from competitive providers. What makes Michigan’s market distinct is its strong seasonal demand: long, harsh winters drive heavy heating needs, and deregulation gives households and businesses tools to lock in stable rates ahead of those cold months. By blending choice with utility reliability, Michigan’s system offers a balance of flexibility and security that not every state enjoys.

Average Natural Gas Price

$1.796 /CCF

Ranks 12th Cheapest in the U.S.

Average Natural Gas Bill

$69 /month

Ranks 8th Cheapest in the U.S.

Natural Gas Usage Per Capita

19th Lowest

Average Per Person: 101.97 MCFs Annually

Largest Natural Gas Companies in Michigan

Many of the residents of Michigan receive their natural gas utility service from one of the larger companies that service the state.

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Michigan Internet Connectivity

Broadband Availability

86.42%

Ranks 21st in the U.S.

Percent of Ppopulation with access to 100 Mbps download and 20 Mbps upload

1 Gig Availability

26.19%

Ranks 11th in the U.S.

Percent of population with access to download speeds of 1 Gbps

Fiber Availability

20.73%

Ranks 5th in the U.S.

Percent of population with access to Fiber Internet

Largest Internet Providers in Michigan

When it comes to high-speed internet, homes in Michigan have plenty of options to stay connected! From bustling cities to quiet rural areas, a variety of providers offer reliable service across the state. Here are some of the biggest names keeping Michigan homes online and in the loop:

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Utility Costs in Michigan

The average monthly total utility bills in Michigan is $220.35, which is 20.49% lower than the national average.

Average Electric Bill

$122

Lower than national average

Average Natural Gas Bill

$69

Lower than national average

Average Water Bill

$29

Lower than national average

Assistance for Paying Utility Bills in Michigan

Michigan residents facing financial hardship have access to several state-run and non-profit programs designed to help cover energy costs. Whether you are dealing with a temporary crisis or need long-term support, these programs can assist with past-due bills, prevent service shut-offs, and improve home energy efficiency.

General Assistance Programs

Most utility assistance in Michigan begins with the state’s primary relief agency or through non-profit partners.

State Emergency Relief (SER): Run by the Michigan Department of Health and Human Services (MDHHS), this program provides immediate financial help for past-due utility bills or to prevent a shut-off. You can apply online through MI Bridges.
Michigan Energy Assistance Program (MEAP): Once you have applied for SER, you may be eligible for additional supplemental aid and self-sufficiency services through MEAP. This program connects residents with service providers to help manage ongoing energy costs. Learn more at the Michigan Public Service Commission.
Home Heating Credit: This is a tax credit available to eligible low-income households to help pay for winter heating bills. You do not need to file a standard state income tax return to receive it, but you must file the specific claim form (MI-1040CR-7). Forms and details are available from the Michigan Department of Treasury.
The Heat and Warmth Fund (THAW): THAW is a leading non-profit in Michigan that provides utility assistance to residents in crisis. They work with a network of agency partners across the state.
Weatherization Assistance Program (WAP): This federally funded program provides free home energy conservation services to low-income homeowners and renters to reduce energy usage and lower utility bills. Visit the MDHHS Weatherization page to find a local operator.

Utility-Specific Plans: Major providers like DTE Energy and Consumers Energy offer their own payment plans and assistance programs. These often include the Shutoff Protection Plan, which allows eligible customers to pay a down payment and set up a monthly installment plan to maintain service year-round.

Special Programs for Seniors

Michigan offers specific protections to ensure seniors are not left without heat during the coldest months.

Winter Protection Plan: Eligible seniors (age 65+) are protected from service shut-offs during the heating season (November 1 through March 31). Participants must pay a portion of their estimated annual bill, but they cannot be disconnected during this period. Contact your natural gas or electric utility provider directly to enroll.
Home Heating Credit: Seniors may qualify for a higher calculation on the standard Home Heating Credit claim, providing additional financial relief during tax season.

Special Programs for Students

While most students are encouraged to apply for general assistance if they meet independent income guidelines, many universities in Michigan maintain emergency funds specifically for students facing unforeseen financial crises, including utility bills.

University Emergency Funds: Institutions such as the University of Michigan, Michigan State University, and Wayne State University have “Student Emergency Funds” that can cover essential costs like electricity and heating bills. Students should contact their university’s Office of Financial Aid or Dean of Students Office to inquire about application requirements.

Special Programs for Veterans

Veterans and their families have access to dedicated funds to assist with financial emergencies.

Michigan Veterans Trust Fund (MVTF): This fund provides temporary financial assistance to veterans and their families during emergencies, which can include utility shut-off notices. Applications are processed through county committees. You can find your local agent via the Michigan Veterans Affairs Agency.
Active Duty Protection: Utility companies in Michigan are often required to offer shut-off protection for active duty military personnel and their families. Service members should contact their utility provider directly to apply for this status.