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Common Term Guide

  • Customer Charge

    A fixed monthly charge that helps pay for meter service, billing, and keeping your home connected to the system — even when you use little or no energy.

    Also called: Availability Charge, Facilities Charge, Monthly Service Charge, System Access Charge.

  • Distribution / Delivery Charge

    A charge for the equipment and labor that deliver electricity or natural gas to your home, such as poles, wires, pipelines, and routine maintenance.

    Electric also called: Delivery Services, Distribution Energy Charge.

  • Energy Charge (Electric)

    A usage-based charge for the electricity you used during the billing period, measured in kilowatt-hours (kWh).

    Also called: Electric Usage, Energy Usage, Power Supply Energy/Capacity Charge.

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

    A usage-based charge for the natural gas your utility buys to supply customers. These costs are passed through with no markup. 

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

    A usage-based charge that reflects changes in the cost of fuel and purchased electricity your utility needs to generate power. These costs are passed through with no mark-up.

    Also called: Power Supply Cost Recovery, Wholesale Power Adjustment.

  • On Peak / Off Peak Rates (Electric)

    Rates that change based on the time of day or season. Electricity typically costs more during high-use periods like weekday afternoons and less during nights or weekends.

  • Surcharges

    Small additional charges that help fund statewide programs or specific utility projects approved by the Michigan Public Service Commission (MPSC). Examples include: energy efficiency, renewable energy, infrastructure upgrades, or customer assistance programs.

  • Energy Waste Reduction (EWR) Surcharge

    A charge that supports programs that help homes and businesses reduce energy waste and lower long-term energy costs for all utility customers.

    Also called: Energy Efficiency, EO Surcharge, MI Energy.

  • Low Income Energy Assistance Fund (LIEAF)

    A small monthly charge that supports programs helping eligible Michigan households avoid shutoffs and manage energy bills.

  • Renewable Energy Charge

    A charge that supports investments in renewable energy sources such as wind and solar power.

  • Rate Realignment Adjustment

    A temporary charge or credit that helps ensure each customer group (residential, commercial, industrial) pays its fair share of the actual cost to serve that group.

  • Securitization Charge

    A charge used to repay low-cost bonds issued to refinance certain utility costs, which can help reduce long-term expenses for customers.

  • Tax Adjustments or Credits

    Credits or small charges that reflect changes in federal or state tax laws and how they affect utility costs.

  • Sales Tax

    A state-required tax applied to energy bills — 4% for residential customers.