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Understanding Your Residential Electric & Gas Bill

Businessman with bills and smart phone at the table.

Understanding Your Residential Electric & Gas Bill

The Michigan Public Service Commission helps to ensure safe, reliable, and accessible energy services at reasonable rates. Michigan law allows utilities to recover the reasonable costs of providing service. These costs include things like maintaining poles and wires, operating power plants, and supporting the workers needed to keep electricity flowing. The MPSC reviews these costs to make sure they are necessary and reasonable before they can be collected from customers.

Some customers may see additional items on their bills if they participate in optional programs, such as rooftop solar, voluntary green pricing, electric vehicle charging programs, or if they have multiple meters or special service needs.

What Makes Up Your Energy Bill?

Your monthly energy bill—whether electric, natural gas, or both—includes several types of charges. Some reflect the energy you used, while others support the safe, reliable operation of the system that brings electricity or natural gas to your home. This page explains the most common charges you’ll see as a Michigan residential customer. These include:

  • Energy Charges: an amount that changes based on how much energy you use
  • Fixed Charges: a set amount billed to each meter each month
  • Surcharges: taxes, fuel adjustments, etc. Surcharges may be based on a per customer charge, actual consumption, or your demand level

Charges in Depth

  • Energy Charges

  • Fixed Charges

  • Surcharges

Need Help?

Bill Assistance

We all need a little help sometimes.  Last year, hundreds of thousands of Michiganders received help with their home energy bills or received shut off protection for their utility service. If you need help, you are not alone. Visit MPSC's Get Help page for utility customers to learn about available help, shut off protections, and how to apply.

There are also resources available for customer assistance organizations, which can be found at MPSC's information for customer assistance organizations page.

Reducing Energy Usage

Many customers find that understanding their energy use and making a few adjustments helps them feel more in control of their bills. Your utility may offer energy saving programs, rebates, and tips that can help you use less energy at home. A list of resources to help you find practical, low-cost ways to lower your usage can be found at MPSC's Energy Optimization page.

The Michigan Department of Health and Human Services (MDHHS) also administers a Weatherization Assistance Program, funded by the Federal Department of Energy (DOE) and the Low-Income Home Energy Assistance Program (LIHEAP). The program provides energy conservation and related health and safety services for eligible low-income households at no cost to the residents. 

Sample Residential Monthly Bills

Each Michigan utility has a slightly different bill layout. Each includes information about your energy use, fixed charges, and surcharges.  You can find examples of utility bills at the links below for utilities that are regulated by the MPSC.

  • Alpena Power Company Logo

    Alpena

  • Consumers Energy Logo

    Consumers Energy Company

  • DTE Logo

    DTE

  • Indiana Michigan Power Company Logo

    Indiana Michigan Power Company

  • Northern States Power Wisconsin (XCEL)

    Northern States Power-Wisconsin (XCEL)

  • Upper Michigan Energy Resources Corporation Logo

    Upper Michigan Energy Resources

  • Upper Peninsula Power Company Logo

    Upper Peninsula Power Company

  • Citizens Gas Fuel Company Logo

    Citizens Gas Fuel Company

  • Michigan Gas Utilities Logo

    Michigan Gas Utilities Corporation

  • SEMCO Gas Company Logo

    SEMCO Energy Gas Company

Common Term Guide

A simple guide to the most common charges that may appear on your electric or natural gas bill.

  • Customer Charge

  • Distribution / Delivery Charge

  • Energy Charge (Electric)

  • Gas Cost Recovery (GCR) Charge (Natural Gas)

  • Power Supply Cost Recovery (PSCR) Charge (Electric)

  • On Peak / Off Peak Rates (Electric)

  • Surcharges

  • Energy Waste Reduction (EWR) Surcharge

  • Low Income Energy Assistance Fund (LIEAF)

  • Rate Realignment Adjustment

  • Securitization Charge

  • Tax Adjustments or Credits

  • Sales Tax

Additional Resources

Understanding Your Residential Electric & Gas Bill

This consumer tip explains residential electric and gas bills, covering different types of utility charges including energy charges, fixed fees, surcharges, and peak/off‑peak rates. It helps customers understand costs, billing terms, and programs available to help them with their utility bills.

Energy Affordability in Michigan: What You Need to Know

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.

Michigan Energy Assistance Program

MEAP helps low-income Michigan households reduce energy insecurity by providing payment assistance for home heating and electricity, funded through the Low-Income Energy Assistance Funding Factor. Support prioritizes vulnerable customers and promotes long-term self-sufficiency.