The electric and natural gas services we deliver are regulated by the Michigan Public Service Commission (MPSC). In general, rates include three costs:

• Energy generation and delivery: The operation of power plants, electric distribution (poles and wires) and natural gas pipelines, along with upgrades that help us stay current with environmental regulations.
• Operating expenses: Fuel for power plants (such as coal and natural gas), the cost of electricity or natural gas we purchase from the energy market, and activities related to maintenance, repair, service and billing.
• Michigan energy programs: Expenses that support areas such as energy efficiency and renewable energy.

Rate Book for Electric Service

MPSC Electric Orders

Electric Standard Forms

Explanation Electric Charges

Case No. U-20134 Application

Case No. U-20134 Exhibits Part 1

Your business has two types of charges on its electric bill, power supply and delivery service.

Power Supply
Your power supply charges include the costs to create and move the electricity over high-voltage transmission lines.

Your energy costs are directly related to the amount of electricity you use, measured in kilowatts (kW) and/or kilowatt-hours (kWh), and the time of year when you use it. For example, the price may be lower during the winter months (October – May) because demand is usually lower.

During summer months (June -September), the price may increase because demand is usually higher. The increased demand for electricity makes it more expensive to create or buy. Higher summer prices encourage people to limit their use, helping minimize everyone’s costs.

Delivery Service
Delivery service charges are the costs to provide you with services and local energy distribution. They include:

• System Access: A fixed cost that covers metering and billing.
• Distribution: An adjusted cost based on how much electricity you use. This includes electricity delivery from the transmission system to your business and the necessary equipment, maintenance and operating expenses.
• Energy Optimization: As part of Michigan’s energy laws, a monthly per meter surcharge is added to support Energy Efficiency programs. These programs help avoid costly investments in new energy sources by reducing energy use.
• Other charges: These may vary depending on your business and energy use.

We strive to provide you with the best product at the best price and are always looking for ways to reduce your costs by:

• Reducing power plant fuel costs
• Recycling more than 20 major types of waste
• Clearing branches and other items away from power lines
• Using a variety of electric generation facilities and running our most efficient units more often
• Minimizing your downtime costs during outages
• Updating systems to be more efficient
• Installing upgraded meters, a way to help us provide more efficient service to our customers