Who are these rates for?
Our electric rates for residential service applies to customers who live in:
- single-family home,
- duplex,
- condominium, or
- apartment building.
Depending on where you live, your electric service is designated as Urban or
Rural. This designation is shown on your bill:
- RES RURAL ELEC means Residential Rural Electric Service.
- RES URBAN ELEC means Residential Urban Electric Service.
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How reliable is my electric service?
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 we learn of
any outage, we immediately begin efforts to restore power.
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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 10 100-watt bulbs for one hour.
- Power supply cost adjustment - accounts for annual fluctuations
in the 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 our actual
costs compare to the Energy Charge. The Michigan Public Service Commission approves
this adjustment amount.
- Fixed Charge - a charge that does not vary with the amount of
electricity you use. The Fixed Charge covers the cost of providing safe, reliable
electric service. For example, it covers our costs of 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 Fixed 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
are summarized in the lower left-hand corner of your monthly bill.
| Type of customer |
Fixed Charge |
Energy Charge |
| Year-round (12-month) |
$12.00 per month |
$0.03433 per kWh |
| Seasonal* (6-month) |
$24.00 per month |
$0.03433 per kWh |
* If your seasonal facility is used during the summer months, you'll be billed for
electric service May through Oct. If your seasonal facility is used during the winter months, you'll be
billed for electric service Nov. through Apr. 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, we will send you a bill at that time.
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