Michigan electricity prices - 22.99¢/kWh (June 2026)

Residential price, average bill, and the data-center story

• Residential electricity in Michigan costs 22.99¢/kWh as of June 2026 - +10.4% year over year, per U.S. Energy Information Administration data.
• The average Michigan home used 656 kWh that month and paid an average bill of $150.77 (+0.3% vs a year earlier).
• Michigan has the 13th-highest residential electricity price of the 50 states and DC - 25% above the U.S. average of 18.34¢/kWh.

Price by sector

Data centers & Michigan's electric bills

Michigan extended sales and use tax exemptions to large data centers in laws signed December 30, 2024 (SB 237) and January 2025 (HB 4906), then regulators moved to wall off ratepayers from data-center costs: the MPSC approved Consumers Energy's 100 MW large-load tariff on November 6, 2025 and, on December 18, 2025, approved DTE's contracts for the 1.4-gigawatt OpenAI-Oracle-Related Digital Stargate campus in Saline Township with ratepayer-protection conditions. The Saline Township project proceeded via a court settlement after the township initially denied rezoning, and the township approved a reduced tax abatement on July 15, 2026.

• 2025-01 - Governor Gretchen Whitmer signed Senate Bill 237 on December 30, 2024 exempting data center equipment from Michigan use tax, and signed House Bill 4906 in January 2025 providing sales tax breaks on data center equipment. Source: Michigan Public
• 2025-11-06 - On November 6, 2025 the Michigan Public Service Commission approved Consumers Energy's data-center tariff for customers of 100 megawatts or more, requiring 15-year contracts, minimum billing of 80 percent of forecasted demand regardless of usage, and exit fees equal to the minimum monthly bill times remaining contract months. Source: Planet Detroit
• 2025-12-18 - On December 18, 2025 the MPSC approved DTE Electric's contracts to serve the 1.4-gigawatt, $7 billion Stargate hyperscale data center being developed by OpenAI, Oracle, and Related Digital in Saline Township, with conditions requiring DTE to absorb losses if a projected $300 million in annual cost savings fails to materialize, prioritizing data-center curtailment before residential customers, and directing DTE to file a standard large-load rate structure within 90 days. Source: Bridge Michigan
• 2026-07-15 - On July 15, 2026 the Saline Township board - which had initially denied rezoning for the data center before developer Related Digital sued citing Michigan's ban on exclusionary zoning and the parties settled by consent judgment - approved a smaller-than-requested tax abatement based on a $4.8 billion valuation instead of Oracle's proposed $43 billion, along with a clawback provision if the project fails to meet conditions. Source: Michigan Public

Each item above is dated and linked to its primary source; entries are reviewed quarterly. See the large-load tariff tracker and the who-paid-what ledger for the cross-state picture.

Michigan is served by the PJM grid region (in part), where the price of guaranteed generating capacity is set in an annual auction - see PJM capacity auction prices for how that reaches retail bills.

Water

Electricity delivered in Michigan carries 3.41 liters of water per kilowatt-hour consumed at the power plants supplying it (1.51 L/kWh excluding hydropower reservoir evaporation), against a national average of 4.28. That is below the national figure, and it is a property of the grid here rather than of any one building: a data center drawing 100 GWh a year in Michigan accounts for about 90.2 million gallons of power-plant water before it cools anything. All states ranked →

A data center's water use is roughly twelve times larger once the water evaporated at its power plants is counted. The Colorado River arithmetic → · how the water numbers work →

All states ranked → · Download Michigan data (CSV) · Glossary