What Michigan households pay for electricity and heat, by provider

Residential rates by utility (EIA-861, average all-in ¢/kWh)

Average price = residential revenue ÷ residential sales from each utility's federal EIA-861 filing (bundled service — supply + delivery + riders, not a quoted tariff rate). State average = 19.37¢/kWh, volume-weighted across these utilities (2024). Your distribution utility is fixed by address; these gaps measure what households in different territories actually paid. A further 1 competitive suppliers / solar lessors report energy-only or behind-the-meter sales in Michigan; their prices cover only part of the bill and are not comparable to the all-in figures above.

Can you choose your electric company in Michigan?

Electric supply choice: yes  ·  Gas supply choice: yes

Electric choice capped at 10% of each utility's load (waitlist). Gas Customer Choice (DTE, Consumers, SEMCO) uncapped.

How to switch suppliers in Michigan (3 steps)

1. Find the price to compare (default supply rate) on your utility bill — you only save when an offer beats it for the same period.
2. Compare licensed supplier offers on the state's official shopping site: michigan.gov/mpsc. Check term, early-exit fees, and whether the rate is fixed or variable.
3. Sign up with the supplier — they handle the switch. Your utility still delivers the power, owns the wires, and responds to outages; only the supply line of the bill changes.

Heating: which fuel is cheapest per million BTU in Michigan?

Utility natural gas is the cheapest heating fuel in Michigan at $10.73/MMBTU — heating oil costs 3.0× as much per BTU. Conversions: 1 kWh = 3,412 BTU; 1 therm = 100,000 BTU; heating oil 138,500 BTU/gal; propane 91,452 BTU/gal. Site-energy prices — appliance efficiency changes delivered-heat cost: a 95% AFUE gas furnace delivers heat near the gas figure, while a heat pump at seasonal COP 2.5–3 cuts the effective electric figure by 60–70%.

Electricity price trend, last 12 months

Michigan's average residential price went from 18.89¢/kWh in Feb '25 to 20.00¢/kWh in Feb '26 — up 6% year-over-year. The 12-month peak was 21.20¢ in Sep '25.

Head-to-head utility comparisons in Michigan

• DTE Electric Company vs Consumers Energy Co — who's cheaper?
• DTE Electric Company vs Great Lakes Energy Coop — who's cheaper?
• DTE Electric Company vs City of Lansing — who's cheaper?
• Consumers Energy Co vs Great Lakes Energy Coop — who's cheaper?
• Consumers Energy Co vs Indiana Michigan Power Co — who's cheaper?
• Consumers Energy Co vs City of Lansing — who's cheaper?
• Great Lakes Energy Coop vs Indiana Michigan Power Co — who's cheaper?

Questions people ask

Who has the cheapest electricity in Michigan?

Indiana Michigan Power Co, at an average 17.0 cents per kWh for 2024 among Michigan utilities with at least 50,000 customers (EIA-861). The most expensive, DTE Electric Company, averaged 20.1 cents — a difference of about $337 per year at 10,800 kWh.

Can I choose my electric company in Michigan?

You cannot choose the utility that delivers power — that is set by your address. Michigan does allow residential supply choice: you may buy the supply portion from a licensed competitive supplier if it beats your utility's price to compare. The official shopping site is michigan.gov/mpsc.

Is gas or electric heat cheaper in Michigan?

Per million BTU of site energy, utility natural gas was $10.73 (Feb 2026) versus $58.62 for electric resistance heat, $32.48 for heating oil. A heat pump delivering 2.5-3 units of heat per unit of electricity brings electric heating to roughly $20-23 per MMBTU.

What is the average electric bill in Michigan?

At Michigan's February 2026 average price of 20.00 cents/kWh and typical usage of 900 kWh per month, a household pays about $180 per month ($2160 per year) for electricity. Actual bills vary with usage, utility territory, and tariff.