Electricity rates in Michigan

Michigan allows only limited retail choice: the share of each utility's load that may be served by alternative suppliers is capped, and the cap is generally full, so almost all households are served by their local utility. DTE Energy serves Detroit and southeast Michigan, Consumers Energy serves much of the rest of the Lower Peninsula, and smaller utilities and cooperatives serve the Upper Peninsula. The Michigan Public Service Commission sets their rates.

Generation comes from natural gas, nuclear, a shrinking coal fleet and growing wind and solar. Cold, snowy winters are heated mostly with natural gas, while air-conditioning use grows in summer. Both large utilities have moved residential customers to default time-of-use rates with higher prices on summer afternoons. Traditional net metering has been replaced for newer rooftop solar customers by an inflow and outflow tariff that credits exported power at less than the retail rate.