Your Electric Bill Explained

Wondering what all the lines on your electric bill mean? We've put together a simple breakdown to explain.

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Monthly Service Charge

This is a fixed monthly fee representing everything that must be in place 24/7 for you to access service, regardless of how much or how little actual energy you use. It includes things like substations, poles and wire, labor, vehicles, offices, and annual capital investments to improve reliability and service.

Distribution Charge

This charge reflects your kilowatt usage and includes any additional operational costs not captured by the service charge.

Energy Charge

This represents the cost of generating and transmitting the power you used during that billing cycle based on established rates. We do not generate electricity. Instead, we purchase it from Wolverine Power Cooperative, our power supply partner. The energy comes into our substations over transmission lines, and we distribute the power to your home. We collect the money as part of your monthly bill and pay that back to our power supply partner.

Power Cost Adjustment

This variable charge represents the difference between what we budget for power supply and what we actually pay. 

Optional Programs or Services

If you participate in our community solar, any load management program, net metering, or have a security light, your charges or credits appear above the state tax line.

MI Low-Income Energy Fund

This was established by the Michigan legislature in 2013 as a long-term solution to assist eligible residents with their utility bills. Energy providers collect the funds, then turn them over to be managed by the Michigan Department of Health and Human Services. This fixed monthly fee is capped at $1. 

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Energy-Temperature Comparison

To the left of your breakdown of charges is a graph comparing your monthly energy usage to average outdoor temperatures over the last 13 months. This is a useful tool for predicting when you'll use the most energy in a given year.

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Energy Usage Comparison

Underneath your breakdown of charges are a few fast facts about your energy usage this billing cycle. Blue bubbles on the left compare your total energy usage this month, last month, and this month last year, while green bubbles on the right contain your daily averages from this month.