Michigan utility rates climb as winter nears

Southeast Michigan households heating with natural gas could see lower seasonal bills this winter, but regional forecasts do not guarantee savings for individual DTE Energy and Consumers Energy customers.

The U.S. Energy Information Administration’s 2026-27 Winter Fuels Outlook projects Midwest homes heated by natural gas will spend about 10% less this season than last, thanks to lower fuel prices and temperatures similar to last year. Nationally, homes heated with natural gas can expect to pay an average of $640 over the five-month heating season, November through March, down 9%.

The outlook is less favorable for electric heat. The EIA forecasts a 4% increase in winter electricity bills nationally, driven by a 3% rise in residential electricity prices. Midwest electric-heated homes face a projected seasonal cost of $1,380, up 3%.

“Relatively high natural gas inventories entering the winter season provide a cushion for heating demand, while households that rely on heating oil face higher prices because distillate markets remain tight,” EIA Administrator Tristan Abbey said, as reported by Quartz.

Rate hikes stack up

The federal projections use retail prices that include delivery costs. They are regional averages, rather than forecasts for individual Michigan utilities or households. Actual bills depend on local rates, weather and usage.

The Michigan Public Service Commission approved a $242.4 million rate increase for DTE Electric in February, adding $4.93 per month for a typical residential customer using 500 kilowatt-hours, starting March 5, according to the commission’s announcement. DTE provides electricity to 2.3 million customers across southeast Michigan.

On the gas side, the commission in September approved a $74.52 million increase for DTE Gas, adding $2.87 per month, or about 3.3%, for a typical residential customer using 75 hundred cubic feet of gas monthly, according to its announcement. An additional 68-cent infrastructure surcharge takes effect Jan. 1, 2027. DTE has already notified the commission it plans to file for another gas rate increase, according to the attorney general’s office.

Consumers Energy customers face similar increases. The commission approved a $276.6 million electric rate increase, raising residential rates 8.9%, effective May 1, according to the attorney general’s office. In October, the commission approved a separate $139.2 million gas rate increase for Consumers Energy, adding about $3.92 per month for a typical residential customer using 75 hundred cubic feet monthly, effective Nov. 1, according to the commission. Consumers Energy provides natural gas to about 1.8 million customers across Michigan.

Michigan Attorney General Dana Nessel has criticized the pace of rate increases. After the Consumers Energy gas decision, Nessel said in a statement that customers of both utilities constantly ask when their bills will stop climbing, and that the answer is “never,” Spectrum News reported.

Help paying winter bills

Michigan runs several programs for residents struggling with energy costs.

Winter Protection Plan: Protects seniors 65 and older and low-income customers at or below 150% of the federal poverty level from shutoffs Nov. 1 through March 31 at state-regulated gas and electric utilities, according to the Michigan Public Service Commission. Low-income participants must pay at least 7% of their estimated annual bill each month and arrange repayment of existing arrears. The plan defers payments; it does not erase debt. Contact your utility to enroll.
State Emergency Relief: A crisis program for households with a past-due or shutoff notice, or a declared need for delivered fuel. Income must be at or below 150% of the federal poverty level, with limits of $15,000 in cash assets and $15,000 in material assets, according to the commission’s assistance guide. Apply online at MI Bridges.
Home Heating Credit: A state tax credit for the 2026 tax year. Forms are expected in mid-to-late January 2027, according to state guidance. Customers of state-regulated utilities must notify their utility that they filed to receive protection against heating-service shutoff while the credit is processed. Bills remain payable. Call the Michigan Department of Treasury at 517-636-4486 or visit its website.
Michigan Energy Assistance Program: Provides bill payment help for households at or below 60% of state median income whose electric utility participates in the funding program. Funded through a $1.50 per meter monthly charge on participating utilities’ electric bills. Households participating in State Emergency Relief, SNAP or SSI may be categorically eligible, according to the commission.
The Heat and Warmth Fund: A nonprofit that distributed more than $8.6 million in utility assistance to over 11,000 Michigan households last year, according to THAW’s website. The organization currently says it has temporarily paused new applications, including walk-in applications, because of high demand.