In July 2026, homes in Michigan paid an average of 23.05¢ per kWh, the 13th most expensive of the 50 states and DC and 25.9% above the U.S. average of 18.31¢.
That price is up 12.2% from a year earlier.
Over the past 12 months the average home in Michigan used 630 kWh a month, for an average bill of $133 (U.S.: $157).
About electricity in Michigan
Michigan's electricity comes from a mix of natural gas, coal and nuclear power, and the state generates more than it uses. Michigan allows only a limited number of customers to buy from alternative suppliers.
- natural gas 42%
- coal 23%
- nuclear 22%
- wind 8%
- solar 2%
- other 4%
The Michigan Public Service Commission is the state agency that regulates electric utilities in Michigan.
What drives electricity prices in Michigan
Michigan's electricity comes mainly from natural gas, coal and nuclear power, with wind growing. Its prices are above the national average, driven largely by the cost of the grid: the two large utilities, DTE Energy and Consumers Energy, have been spending heavily on replacing old equipment and trimming trees after repeated storm outages, and those investments are recovered through rates.
Michigan has a limited form of retail choice. Only about a tenth of each utility's sales may come from other suppliers, and the program is mostly full, so nearly all homes buy power from their utility at rates set by the Michigan Public Service Commission.
Most of the Lower Peninsula is in the MISO regional grid. Laws passed in 2023 require the state's utilities to move to fully clean electricity by 2040, which leaves little room for coal. Michigan homes use less electricity than most, which keeps bills lower than the price alone would suggest.
Average electric bill in Michigan
Over the last 12 months the average Michigan home paid $133 a month for electricity, the 17th lowest of the 50 states and DC. In July 2026 the average bill was $211 for 914 kWh.
Over the last 12 months, homes in Michigan used the most electricity in July, when air conditioning drives usage up: an average of 914 kWh and a $211 bill. The lightest month was April, at 506 kWh and $108.
What would I pay?
| Monthly use | Per month | Per year |
|---|---|---|
| 500 kWh × 23.05¢typical | $115.25 | $1,383 |
| 1,000 kWh × 23.05¢ | $230.50 | $2,766 |
| 1,500 kWh × 23.05¢ | $345.75 | $4,149 |
| 2,000 kWh × 23.05¢ | $461.00 | $5,532 |
Estimate your own bill
Cost of electricity in Michigan by month
Businesses in Michigan paid 16.46¢ per kWh in July 2026 (the 14th most expensive for business power), and industrial users paid 9.81¢.
Electric companies in Michigan
30 utilities deliver electricity to homes in Michigan. The largest is DTE Electric Company, serving 2,078,328 homes.
| Utility | Homes served | Avg. home rate |
|---|---|---|
| DTE Electric Company | 2,078,328 | 20.25¢ |
| Consumers Energy Co | 1,662,741 | 20.66¢ |
| Great Lakes Energy Coop | 123,277 | 20.32¢ |
| Indiana Michigan Power Co | 112,973 | 17.19¢ |
| City of Lansing | 87,026 | 19.44¢ |
| Upper Peninsula Power Company | 47,805 | 27.98¢ |
| Cloverland Electric Co-op | 36,144 | 14.27¢ |
| Cherryland Electric Coop Inc | 35,548 | 17.29¢ |
| Upper Michigan Energy Resources Corp. | 33,339 | 17.46¢ |
| Presque Isle Elec & Gas Coop | 32,519 | 23.93¢ |
"Avg. home rate" is what each utility's full-service residential customers paid on average in 2025 (revenue ÷ kWh sold). Delivery-only utilities have no full-service rate.
Can you choose your electricity supplier in Michigan?
Only in limited cases. Retail choice is capped at 10% of each utility's sales, mostly taken by non-residential customers. Most households buy electricity from their local utility.
Michigan compared with neighboring states
| State | Price per kWh | Avg. monthly bill (12 mo.) |
|---|---|---|
| Indiana | 16.73¢ | $158 |
| Wisconsin | 19.06¢ | $124 |
| Ohio | 19.45¢ | $158 |
| Michigan | 23.05¢ | $133 |
Michigan electricity FAQ
What is the average electric bill in Michigan?
The average home in Michigan paid $133 a month over the last 12 months, using 630 kWh. That is the 17th lowest of the 50 states and DC. In July 2026 alone, the average bill was $211.
How much does electricity cost per kWh in Michigan?
Homes paid an average of 23.05¢ per kWh in July 2026, 25.9% above the U.S. average of 18.31¢. Businesses paid 16.46¢ per kWh.
Which month has the highest electric bills in Michigan?
July, in the last 12 months of data: the average bill reached $211 (914 kWh), compared with $108 in April, the lowest month.
Can I choose my electricity provider in Michigan?
Only in limited cases. Retail choice is capped at 10% of each utility's sales, mostly taken by non-residential customers. Most households buy electricity from their local utility.
What are the largest electric companies in Michigan?
By number of residential customers in 2025: DTE Electric Company (2,078,328), Consumers Energy Co (1,662,741), Great Lakes Energy Coop (123,277).
Latest MI electric rates, bills and usage: U.S. Energy Information Administration retail sales data (forms EIA-861M and EIA-861), latest month July 2026. Utilities and suppliers: EIA-861 (2025). Bills and usage are revenue and sales divided by customers. Last updated 2026-10-20.