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Electric Rates for Residential Customers in Michigan

Who Are These Rates For?

Our Electric Rates for Residential Service are designed to serve you where you live, whether your residence is a:

Depending on where you live, your electric service is designated as Urban or Rural. This designation is shown on your Public Service bill:

• RES RURAL ELEC means Residential Rural Electric Service.
• RES URBAN ELEC means Residential Urban Electric Service.

How Reliable Is the Service These Rates Provide?

The Urban and Rural Residential Electric Service provide a firm supply of electricity. This means the electricity is available whenever you need it. 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 to your home. When Public Service learns of any outage, we immediately begin efforts to restore power.

What Charges Are Involved?

Each month, your bill for electric service includes the following charges:

• Energy Charge, based on the amount of electricity you use. Electricity is measured in kilowatt-hours (KWH). One kilowatt-hour is equivalent to the amount of power used by ten 100-watt bulbs for one hour. See our table for your current Energy Charge.
• Power Supply Cost Adjustment, which accounts for annual fluctuations in Public Service'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 Public Service'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 covers the cost of Public Service owning, maintaining and reading meters; maintaining equipment; and providing service programs and communication services. It is the minimum amount you will be billed each month.

The Customer Charge and Energy Charge are higher for rural areas because homes are farther apart — requiring more poles and wires to reach customers. And each rural home often needs its own transformer because lots are much bigger.In urban areas, many homes in a neighborhood may be served by one transformer, resulting in a lower cost per customer for equipment.

Several factors can influence your monthly electric use. Major factors that can be measured by Public Service are summarized in the lower left-hand corner of your monthly bill.

The table below shows current Customer Charges and Energy Charges for urban and rural customers.

Type of Customer	Residential Urban Electric Customer Charge	Residential Urban Electric Energy Charge	Residential Rural Electric Customer Charge	Residential Rural Electric Energy Charge
Year-round (12-month)	$9.00 per month	$0.08487 per KWH	$11.00 per month	$0.08970 per KWH
Seasonal* (6-month)	$18.00 per month	$0.08487 per KWH	$22.00 per month	$0.08970 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 substantial electric use is recorded during the off-season, Public Service will send you a bill at that time.

See the Michigan Rate Book for more information.