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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 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.

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.

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:

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

Michigan Deregulaton of Electric and Natural Gas

Michigan is one of eleven states that has deregulated both electricity and natural gas services. That means you have a choice of what electric or natural gas provider supplies utilities to your home. Choose your city below to see a list of utility providers available in your area.