MPSC launches webpage showing how it works to reduce energy costs for Michiganders

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The Michigan Public Service Commission launched a new affordability webpage today that outlines actions the Commission has taken in recent years to control energy costs and expand energy assistance programs for those most in need.

Life is increasingly expensive, and the costs for basic needs continue to rise, making monthly expenses harder to manage. The MPSC remains committed to making energy more affordable and is working for Michiganders to help keep costs down.

The affordability webpage explores years of intensive study and work at the MPSC to address energy affordability, resulting in Michigan’s best national home energy cost ranking in a decade. Those efforts include:

• The Commission’s recently announced energy affordability goal of reducing the home energy burden to no more than 6% of household income for Michiganders most in need. Building on five years of study and input gathering, the goal is to cap energy burden at 6% of income through affordable payment plans, reducing the need to choose between paying for energy bills and other necessities like food and medicine. National organizations note homes with utility costs greater than 6% of income are more likely to struggle to pay bills on time and fall behind.
• The Commission’s meticulous review of all proposed energy costs when utilities seek rate increases. The MPSC has saved customers more than $3.3 billion since 2020 by rejecting all costs that are not fully supported by evidence or shown to be prudent investments.
• The 2024 expansion of the state’s primary energy assistance fund, the Michigan Energy Assistance Program, which is expected this year to provide help to about 90,000 eligible households, up from about 50,000 households before the program was broadened. Ultimately, MEAP could provide assistance for up to 150,000 households annually in the coming years.
• Michigan’s nation-leading energy waste reduction (EWR) programs that save customers billions in unnecessary energy expenses. Just since 2020, the $2.6 billion that utilities have invested in EWR programs have saved customers $6.8 billion. Michigan’s EWR programs have, over the years, prevented the need for the equivalent of building two large fossil-fuel power plants.

The webpage explains the actions the MPSC has taken to keep costs down despite extraordinary pressures driving up utility expenditures on materials, equipment and labor. As nationwide inflation rose an estimated 25.3% between 2020 and 2026, the disciplined approach used by the MPSC kept the cumulative impact on residential bills to 4.9% below the overall rate of inflation.

Michigan’s residential electric bills ranked 15th lowest in the country — the state’s best residential bill ranking in a decade. Michigan’s average monthly electric bill in 2024 was $119.31, nearly $23 a month below the national average of $142.16 and lower than the average of neighboring states, according to the U.S. Energy Information Administration. Michiganders paid less per month than customers in Ohio ($135.16) and Indiana ($133.06). Considering both electric and gas costs, Michigan ranked 18^th nationally in both 2023 and 2024.

Even with Michigan’s improved affordability ranking, the MPSC understands that many families are still struggling. That’s why the MPSC remains committed to making energy more affordable — and why we created this webpage to highlight our ongoing work and provide a clearer view of the progress being made.

Michiganders struggling with home energy costs can find information about financial assistance and other resources at www.michigan.gov/mpsc/gethelp.

The MPSC serves as an expert, impartial regulator committed to consumer protection, fairness and transparency. For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the MPSC on Facebook, X/Twitter, LinkedIn or Instagram.

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