Electric Rates for Michigan Businesses
- Who Are These Rates For?
- How Reliable Is the Service These Rates Provide?
- What Charges Are Involved?
- How Are My Charges Calculated?
Who Are These Rates For?
Our Electric Rates for Small Commercial and Industrial Service are designed to serve your business if it uses less than 100 kilowatts of electricity per month. Depending on your electric consumption, you will be designated as Cg 1-2 (less than 12,500 KWH) or Cg 3-4 (greater than 12,500 KWH).
Depending on where you do business, your electric service is designated as Urban or Rural. This designation is shown on your Wisconsin Public Service bill:
- COML URBAN ELEC means Commercial Urban Electric Service.
- COML RURAL ELEC means Commercial Rural Electric Service.
How Reliable Is the Service These Rates Provide?
Small Commercial and Industrial Electric Service provides a firm supply of electricity to your business. This means the electricity is available continuously, whenever it's needed. The only exception — as with any electric service — is when unexpected events occur (such as a severe storm or a vehicle hitting a power pole) that make it impossible to deliver power. When WPS learns of any outage, we immediately begin efforts to restore power.
What Charges Are Involved?
Each month, your bill for Small Commercial and Industrial Electric Service includes the following charges:
- Energy Charge for the amount of electricity you use. Electricity is measured in kilowatt-hours (abbreviated KWH). (See "How Are My Charges Calculated?" for your current Energy Charge.
- Power Supply Cost Adjustment which accounts for annual fluctuations in WPS's costs of producing or purchasing electricity to meet your needs. The Power Supply Cost Adjustment is a credit or charge on your bill, based on how WPS's actual costs compare to the Energy Charge. The Michigan Public Service Commission approves this adjustment amount.
- Customer Charge a fixed charge that does not vary with the amount of electricity you use. The Customer Charge covers the cost of providing safe, reliable electric service. For example, it includes the cost of WPS owning, maintaining and operating equipment that generates and delivers electricity to your business, as well as the costs of providing customer service. The Customer Charge is slightly higher in rural areas because in these areas, WPS needs longer power lines to provide service to fewer customers. The Customer Charge is the minimum amount you will be billed each month. (See "How Are My Charges Calculated?" for your current Customer Charge.)
How Are My Charges Calculated?
Your business is most likely billed based on energy consumption only. Customers of WPS are billed based on energy only if their total electric demand is 100 kilowatts or less.
If you are billed on energy only, the meter at your facility measures the kilowatt-hours (KWH) of electricity you use each month. The table below shows the Customer Charge and Energy Charge you see on your bill.
Cg-1 & Cg-2 less than 12,500 KWH
| Type of Customer | Commercial Urban Electric Customer Charge | Commercial Urban Electric Energy Charge | Commercial Rural Electric Customer Charge | Energy Charge |
|---|---|---|---|---|
| Year-round (12-month) | $22.00 per month | $0.08925 per KWH | $24.00 per month | $0.09306 per KWH |
| Seasonal* (6-month) |
$44.00 per month | $0.08925 per KWH | $48.00 per month | $0.09306 per KWH |
Cg-3 & Cg-4 greater than 12,500 KWH
| Type of Customer | Commercial Urban Electric Customer Charge | Commercial Urban Electric Energy Charge | Commercial Rural Electric Customer Charge | Energy Charge |
|---|---|---|---|---|
| Year-round (12-month) | $31.00 per month | $0.08932 per KWH | $33.00 per month | $0.09306 per KWH |
| Seasonal* (6-month) |
$62.00 per month | $0.08932 per KWH | $66.00 per month | $0.09118 per KWH |
*If your seasonal facility is used during the summer months, you'll be billed for electric service May through October. If your seasonal facility is used during the winter months, you'll be billed for electric service November through April. Your electric service may remain connected all year. Any incidental electric use during the "off-season" will be included on your first bill of the following season. If your electric use is more than 500 kilowatt-hours during the off-season, WPS will send you a bill during the off-season.
See the Michigan Rate Book for more information.
Several factors can influence your monthly electric use. Major factors that can be measured by WPS are summarized in the lower left-hand corner of your monthly bill.