Electricity Rate in Michigan (2026): 22.01c/kWh Average

Michigan electricity averages 22.01 cents per kWh for residential customers as of May 2026, according to the EIA Electric Power Monthly. This is 3.57c above the US average of 18.44c/kWh. The average monthly bill for Michigan households is $127 based on typical usage of 632 kWh.

Michigan's 22.01c/kWh rate (May 2026) sits above the US average - high for the Midwest - and has drawn sustained political scrutiny over repeated rate increases. Two regulated utilities dominate: DTE Electric serves Detroit and southeast Michigan, while Consumers Energy serves much of the rest of the Lower Peninsula. Michigan is only partially deregulated: state law caps competitive "electric choice" at 10% of each utility's load, and because both DTE and Consumers sit at or near that cap, a new customer can generally only enter the choice program when an existing participant leaves - so in practice most households buy from their regulated utility. The Michigan Public Service Commission (MPSC) has approved a steady stream of rate cases, including a $242 million DTE Electric increase in February 2026 and a $277 million Consumers Energy increase in March 2026, with more filings pending - prompting the state Attorney General to call for reform of how often utilities can seek hikes. Michigan's generation mix is led by natural gas and nuclear, with a rising renewables share and a shrinking coal fleet.

Generation mix: Natural gas 45%, nuclear 25%, renewables 20%, coal 10%. The fuel mix is a primary driver of electricity rates - states with abundant hydro or nuclear tend to have lower rates, while states dependent on imported petroleum (Hawaii) or natural gas pay more.

Year-over-year change: Michigan rates rose 8.8% year-over-year as of May 2026. This compares to the US average increase of 6.2% over the same period.