Michigan commercial electricity rates

Analyst note

The Michigan commercial price sat above the U.S. average in 9 of 10 years; the gap was -0.09 ¢ in 2015 and +1.26 ¢ in 2024. In the 2024 ranking Michigan sits between New Jersey (14.64 ¢) one place above and Alabama (13.64 ¢) one place below; the top of the list is 24.17 ¢ away and the bottom 6.82 ¢. Michigan was 17th in 2015 with 10.55 ¢ and is 13th now; a rise in the table. Michigan commercial prices rose in 9 of 9 years. The largest rise was +6.8% in 2023, and the largest fall +0.9% in 2016. The Michigan price peaked at 14.01 ¢ in 2024 and bottomed at 10.55 ¢ in 2015; 2024 is the peak and +32.8% from the low. Compounded, that is +3.20% a year in Michigan, +1.17 points against the U.S. Michigan buys 2.56% of all U.S. commercial electricity with 2.90% of the accounts, so the average Michigan account uses 0.88 times the national average.

Michigan commercial customers paid 14.01 ¢ in 2024, which puts the state 13th of 51, a middle position, 1.26 ¢ over the U.S. Nine years moved the Michigan commercial price +32.8% (+3.2% a year), ahead of the U.S. by 13.0 points. The sharpest year was 2023 at +6.8%; the peak came in 2024.

The latest Michigan year moved +4.6%, so prices are still climbing. The Michigan residential price of 19.30 ¢ sits 5.29 ¢ above. A Michigan commercial account uses 5,490 kWh a month; priced at 14.01 ¢ that is about $769, and the sector buys 37.6% of Michigan's power.

Counting revenue instead of kWh, Michigan commercial accounts bring in 37.2% of Michigan sector revenue on 37.6% of the kWh, a discount of 0.4 points that comes from the price level: 14.01 ¢ here against 19.30 ¢ for residential and 8.26 ¢ for industrial accounts. The average Michigan commercial account uses 5,490 kWh a month, 26 of 51 among states on that measure; a residential account uses 0.11 times as much and an industrial account 74.53 times. Commercial accounts are 11.10% of the 5,086,703 accounts in Michigan.