This page explains why and how energy costs change, shows Michigan’s national standing, and outlines how the MPSC improves affordability and reliability, reduces costs, and expands assistance. It also guides residents on understanding their utility bills and directs them to programs that support energy efficiency and affordability for Michigan families.
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Since 2020, the Michigan Public Service Commission (MPSC) has taken a wide range of actions to lower costs, reduce fuel expenses, improve efficiency, and make energy assistance more affordable. These efforts have saved customers billions of dollars while strengthening long-term reliability and affordability.
The MPSC has saved Michigan customers more than $3.3 billion since 2020 by closely examining and reducing utility rate increase requests—disallowing an average of 50% of requested rate increases. Without this disciplined regulatory scrutiny, customer bills would be significantly higher than they are today.
Residential rate increases have remained below the overall rate of inflation from 2020 through July 2026. When accounting for inflation, the average Michigan customer’s utility bill is 4.9% lower than it was in 2020, meaning electricity and natural gas costs make up a smaller percentage of household budgets than did before the pandemic. Bill increases for all regulated utilities in Michigan have been below cumulative inflation since 2020, with one exception shown below.
Michigan is a national leader in energy efficiency. According to national 2025 data, Michigan ranked:
Key savings impacts:
In 2024, utilities invested $142.5 million in EWR programs for income qualified customers—over 20% of total utility EWR budgets.
Fuel costs are a key driver of utility costs, typically comprising around one third of total utility costs. The Commission has saved hundreds of millions of dollars in fuel costs for Michigan customers.
The MPSC advocates for lower natural gas transportation costs in cases before the Federal Energy Regulatory Commission helping to save more than $790 million for Michigan customers since 2020.
Most of the natural gas consumed in Michigan is imported from other states. Michigan customers pay transportation costs to deliver the natural gas by pipeline to the utilities and those rates are regulated by the Federal Energy Regulatory Commission.
The MPSC has authorized Michigan utilities to scale up renewable energy in accordance with Michigan laws which has resulted in more than $948 million in fuel cost savings in the last 20 years, because the majority of renewable energy produced in Michigan is from zero-fuel cost wind and solar.
The avoided average fuel costs are calculated as the actual wind and solar production in Michigan as reported to EIA, the cost of coal and natural gas fuel and reagents in MPSC power supply cost recovery cases, and the actual coal and natural gas generation in Michigan as reported to EIA.
The MPSC has approved discounted off-peak rates, opening the door for Michigan customers to shift their energy use and benefit from significant savings on their monthly bill.
Michigan utility customers can expect to save more than $80 through the summer (June – September) by shifting their electricity usage outside of the utility’s on-peak period (typically 2:00 pm – 7:00 pm). Comfort can be managed by pre-cooling earlier in the day at the off-peak rate, utilizing fans, closing blinds, and taking other actions during the on-peak period. (Actual savings are dependent on the approved utility rate, home size, air conditioner size, weather, and other factors.)
The MPSC has approved several alternative rate options that provide different levels of savings depending on when you use electricity. The more flexibility you have to shift your energy use to off-peak times, the lower your bill will be. Visit your utility’s website and choose a rate that fits your situation.
The MPSC authorizes long-term plans for utilities that are “the most reasonable and prudent” as required by Michigan law. In integrated resource plans, the MPSC is required to evaluate the affordability of the utility’s plan as a part of the decision-making process.
Renewable energy is consistently selected as a low-cost resource in utility long-term plans. Through December 31, 2025, Michigan’s rate-regulated utilities combined totaled 7,580 MW of approved renewable energy projects, an increase of 1,698 MW, or 22%, of the approved renewable energy projects at the end of 2024. Renewable energy (wind and solar) remains the cheapest new source of electricity to build today, even without federal tax incentives.
The Michigan Public Service Commission works to keep energy costs fair and to make sure utilities provide safe, reliable service. The Commission has taken several steps over the years to help improve energy affordability, strengthen customer protections, and support households with the highest energy burdens.
The MPSC oversees the Michigan Energy Assistance Program (MEAP), which helps eligible households pay for electricity, natural gas, and propane and other heating fuels. Recent changes in state law allow more funding for assistance programs, and income limits were expanded so more households can qualify. As a result, energy assistance could reach up to 150,000 households per year—three times more than in recent years.
The MPSC has made Energy Waste Reduction (EWR) a top priority. These programs help customers use less energy through home upgrades, rebates, and education. Michigan continues to be a national leader in energy efficiency, and in 2024, EWR programs were expected to result in over a billion dollars in savings for customers. Every dollar invested in EWR returns more than twice that amount in benefits because customers use less energy and therefore pay lower bills.
A more reliable grid can help customers avoid the costs and frustrations of outages, especially during severe weather. Utilities are replacing aging poles, wires, and equipment, and Michigan has significantly reduced outage durations since 2019 – more than any other state in the country. These upgrades especially benefit communities with older infrastructure and can reduce long-term maintenance costs.
The MPSC created the Energy Affordability and Accessibility Collaborative (EAAC), bringing together residents, community organizations, utilities, and state agencies to remove barriers to assistance, simplify enrollment, and make programs easier to navigate. This includes ongoing work focused on low‑income energy efficiency, weatherization, and connecting customers to multiple support programs.
The Commission is developing new affordable payment plans designed to keep income-qualified customers’ energy costs to a manageable share of their household income. This includes a future target of limiting total energy burdens to 6% of income for eligible households. The MPSC is also working with utilities on a long-term framework for these plans, with phased implementation starting in 2026. See: U-20757 Issue Brief.
To help protect all customers, the MPSC continues to:
These actions help ensure customers only pay for reasonable, necessary utility costs that benefit them and their communities.
Michigan is working to:
While some cost pressures are outside state control, better planning and oversight can reduce unnecessary costs and help manage long-term bills.
On June 17, 2026, Governor Whitmer asked the Commission to share recommendations for legislative reforms that would improve affordability, reliability, and energy assistance programs.
Building on the Commission’s work, including reports, workgroups, technical conferences, and significant data and policy analysis, the Commission responded to the Governor’s request on July 16, 2026 with several recommendations.