LANSING, Mich. (Michigan News Source) – As temperatures rise, so will the electricity bills for Michiganders in more ways than one. Starting last Saturday, DTE and Consumers Energy, Michigan’s two largest electric utilities, implemented their peak-hour rate increases that will be in effect through September. These hikes are part of a “time of use” pricing plan that charges higher rates during peak hours, reflecting the higher costs of electricity production and procurement during these periods.
During the summer, Consumers Energy customers will pay approximately 22 cents per kilowatt-hour during peak hours (2-7 p.m. weekdays), an increase from the 16 cents charged during off-peak times. DTE customers will face a similar situation, paying 22 cents per kilowatt-hour during peak hours (3-7 p.m. weekdays) compared to 17 cents outside these times.
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Keith Cooley from the Citizens Utility Board points out that Michigan residents also pay higher electricity rates compared to neighboring states. While the average cost per kilowatt-hour in Michigan is 18 cents, Ohioans pay 10 cents, Illinois residents pay 12 cents, and Indiana customers pay 13 cents. Despite these higher costs, service reliability remains poor.
The increased rates come at a time when there are anticipated above-normal summer temperatures being forecasted by the National Oceanic Atmospheric Administration’s Climate Prediction Center for the state of Michigan.
Power outages: A persistent problem.
While Michiganders are bracing for higher electricity costs, many are also grappling with frequent and lengthy power outages. According to data published in Nature, Michigan experiences some of the longest power outages in the nation.
Counties like Cass, Huron, and Alcona suffer the most, with residents enduring power outages lasting several days annually averaging about a week or more. Even Wayne County sees an average of 3.4 days without power each year, far above the state average of 1.8 days. Only the states of Louisiana and Maine fare worse in terms of outage duration.
A fraying grid.
The root of these outages lies in Michigan’s aging electricity grid. Outlier Media‘s Sarah Alvarez points out that Michigan’s grid is not only old but also costly to maintain and upgrade. Trees falling on power lines during storms exacerbate the issue, highlighting the need for significant infrastructure investment.
Attorney General Dana Nessel has been vocal about the need for better service from utility companies, arguing that there’s little incentive for these monopolistic utilities to improve performance as long as they remain profitable. Nessel has been pushing for financial reimbursement for customers following outages and questioning the justification for rate hikes.
Utility companies’ response.
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DTE acknowledges the challenges and is committed to improving reliability. Brian Calka, VP of distribution operations at DTE, has outlined a four-point plan to enhance the grid including: regular tree trimming, upgrading power poles, integrating new automated technology, and rebuilding substations.
Mitigating the impact.
In the face of rising costs and unreliable service, there are steps that Michiganders can take to mitigate the impact. Utility companies recommend simple strategies such as running dishwashers at night, doing laundry on weekends, using smart power strips, and setting thermostats to energy-saving schedules during peak hours. Installing a smart thermostat can also help manage energy usage more efficiently, potentially lowering electricity bills despite the higher rates.
As Michiganders navigate this summer’s high electricity prices and the ongoing struggle with power outages, it’s clear that a comprehensive approach is needed. Investing in grid upgrades, holding utility companies accountable, and adopting energy-saving measures can collectively help weather the storm of rising costs and unreliable service.
