One Area of Michigan is Paying Considerably More for Electricity

There is one power company that charges significantly higher rates for power than all of the others. Do you live in this area of coverage?

Over the last 25 years, the cost of electricity has increased an average of 2.96 percent each year. The sticker shock keeps coming as DTE was approved for a $368 million rate increase for reliability upgrades in December 2023. Consumers Energy was just approved for a $92 million rate increase.

How much you're being charged for electricity depends on many factors. However, the major factor for each customer is simply where they live. We don't get to choose our power company. We are stuck with whoever covers our area. With that being said, people that live in Michigan's Upper Peninsula are paying crazy amounts of money for power. The average Michigan resident consumes 652 kilowatt-hours paying an average of $119.58 a month for electricity according to Jackery.com. I've never had an electric bill that low. Using the average Michigan resident's average usage, these are the rates charged in April 2024 by power company according to Michigan.gov.

7 Biggest Electricity Using Appliances in Michigan Homes

Most Expensive Electricity Rates in Michigan by Power Company

UPPER PENINSULA POWER - 26.6 per kWh
DTE ELECTRIC - 20.74 per kWh
CONSUMERS ENERGY - 19.04 per kWh
AEP (I&M) COMBINED - 17.72 per kWh
ALPENA POWER - 16.76 per kWh
UMERC (FORMERLY WEPCO) - 15.76 per kWh
NORTHERN STATES POWER - 15.7 per kWh
UMERC (FORMERLY WPSC) - 15.27 per kWh

Michigan.gov and Canva

Get our free mobile app

The three standouts with the highest rates on that list were Upper Peninsula Power, DTE and Consumers Energy. The most expensive rates by far come from Upper Peninsula Power which is spread throughout Michigan's U.P. D.T.E. covers from Detroit to the tip of the thumb with the second highest rates. The third highest rates are coming from Consumer's Energy and cover nearly the entire lower peninsula of Michigan.

How does Michigan stack up on average when compared to other states? Not good. On average, the state of Michigan is paying 18.34 per kWh. That just barely bumps Michigan out of the 10 highest power rates in the nation according to ChooseEnergy.com.