You may hear it often repeated that Michigan has the highest energy costs in the Midwest and some of the worst reliability in the country.
While that may have been true in the past, federal data show that Michigan is turning the corner, as the state's utilities are making significant improvements in reducing the frequency and duration of power outages. That’s occurring even as Michigan’s average residential customer electric bills stay below what customers in nearby states pay and well below the national average.
Data show a few remarkable milestones:
- Between 2019 and 2024, Michigan bested all other states in reducing annual outages, shaving off nearly an hour per customer, according to Energy Information Administration (EIA) data.
- For the first time in more than 20 years, DTE Electric Co., the state’s largest electric utility, hit the top quartile among electric utilities around the country in 2025 for restoring customers experiencing outages in all weather conditions, lowering customer outage times 60% compared to 2024. That came after the utility reported a 70% reduction in the amount of time customers were without power from 2023 to 2024.
- Consumers Energy announced that the average customer experienced 21 fewer power outage minutes in 2024 compared to 2023. And more than 93% of its customers experiencing power outages had their power restored in less than 24 hours in 2024, up from 87% in 2023.
- EIA data show Michigan’s average monthly electric bill in 2024 was $119.31, nearly $23 dollars below the national average of $142.16, and lower than two neighboring states: Ohio ($135.16) and Indiana ($133.06). It is customer energy bills, not rates per kilowatt hour alone, that are more reflective of the impact of energy costs.
- Michigan ranked 18th lowest nationally for actual household energy costs in 2023 and 2024 when considering both electricity and natural gas.
- Between 2020 and 2025, cumulative inflation increased by 22.5%. Over that same period, cumulative impact on average residential bills from Commission-approved rate case orders was 5.3% lower than the overall rate of inflation, reflecting the Commission’s continued focus on affordability for Michigan customers.
The MPSC acknowledges that there’s still a long way to go to get the electric grid Michigan customers deserve, but independent data show we’re making real progress to get there
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The Commission on Feb. 14 kicked off its annual assessment of the funding factor that supports Michigan’s low-income energy assistance program. Michigan in 2024 moved to provide more assistance funding and make more households eligible for energy assistance and self-sufficiency services.
The Michigan Legislature and Gov. Gretchen Whitmer in 2024 raised the income eligibility threshold for Michigan households to be able to receive support through the Michigan Energy Assistance Program (MEAP) and the amount of money that can be raised for assistance. The new eligibility and funding levels, which took effect in 2025, could ultimately provide assistance to as many as 150,000 households when fully implemented in the coming years, up from an average of 50,000 households prior to the change. In 2025, 56,018 households received assistance with program benefits, before the new benefit eligibility thresholds were implemented starting Oct. 1, 2025.
MEAP is funded by Michigan’s Low-Income Energy Assistance Fund (LIEAF) through a per-meter charge assessed on retail electric billing meters. Before 2024, the maximum that could be assessed per customer was $1 per month, with a cap on total funding raised through the assessment set at $50 million. The 2024 legislation approved raising the per-meter assessment to $2 over time and eliminated the total cap on how much annual funding the meter charge can raise.
The MPSC proposed setting the funding factor for 2026-27 at $1.50 per meter — limited to one meter per residential site (Case No. U-17377). Under the revamped system, the meter fee can be raised by 25 cents each year up to the $2 maximum, after which the funding factor may be adjusted for inflation. If ultimately adopted, the proposal would increase available funds for the program to approximately $90 million for the next fiscal year, a 20% increase over the $75 million for the current year, assuming similar rates of program participation.
Eligible household income guidelines were expanded under the new law. Previously, a family of four was eligible if it made up to 150% of the federal poverty level, which is currently $48,225. Now, that same family is eligible if it makes 60% of the median state income, or $70,225.
If your household is struggling with home energy bills, you can find information about resources at the MPSC’s webpage, www.michigan.gov/mpsc/gethelp or check out our tip sheet on Energy Assistance and Shutoff Protection.
Using energy more efficiently can help lower your utility bills. The U.S. Department of Energy has an array of cold-weather energy-savings tips.
Here is information about orders issued at the MPSC’s Feb. 19 Commission meeting:
- The MPSC approved an additional $242.4 million for DTE Electric Co. investments in upgrading the grid as the utility shows signs of improving reliability (Case No. U-21860). The amount was nearly 58% lower than the $574.1 million the utility had sought. A typical residential customer using 500 kilowatt hour (kWh) per month will see an increase of $4.93, or 4.6%, in their monthly bill. The new rates will take effect March 5, 2026. Among other investments, the Commission approved $200 million for pole and pole top maintenance and modernization, additional spending for the utility to continue its 5-year tree trimming cycle to reduce vegetation-related outages, pilot programs to examine moving power lines underground in Ann Arbor and Lapeer County, and $70.5 million for upgrades to substations and to add new substations to ease stress on the grid, improve reliability and add capacity.
- The MPSC approved a settlement agreement in Consumers Energy Co.’s 2026-2029 Energy Waste Reduction (EWR) plan proceeding (Case No. U-21680). The plan covers both the utility’s electric and gas EWR programs and builds on Michigan’s best-in-the-country performance on EWR programs. Consumers’ EWR plan includes additional commitments on the company’s Income-Qualified Multifamily Program, including working with Michigan Saves on discounted bridge loans to improve affordability, greater coordination with the Michigan State Housing Development Authority in connecting Low-Income Housing Tax Credit applications with EWR rebates and strategies to expand outreach to eligible customers.
Tune in to our next regularly scheduled commission meeting on March 12 at 1 p.m.
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