Trystan Casey
Michigan's electric system is made up of generating plants, transmission lines, and distribution facilities. The state's electric customer choice program allows customers to choose their power supplier from a diverse market of licensed alternative electric suppliers (AES). Consumers Energy Company, DTE Electric Company, Upper Peninsula Power Company, Upper Michigan Energy Resources Corporation, and Cloverland Electric Cooperative are some of the electric utility companies serving Michigan.
| Characteristics | Values |
|---|---|
| Electric Customer Choice Program | Permits shopping for power supply from a diverse market of licensed alternative electric suppliers (AES) |
| Electric Companies | Consumers Energy Company, DTE Electric Company, Upper Peninsula Power Company, Upper Michigan Energy Resources Corporation, Cloverland Electric Cooperative |
| AES | Not regulated by the MPSC; rates of Cloverland are not regulated by the MPSC |
| MPSC | Responsible for electric utility regulation for generation and distribution functions in the state of Michigan for seven privately owned electric utilities |
| Website | www.consumersenergy.com |
| Issues | Experiencing intermittent issues with customers making payments and updating account balances after payment |
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What You'll Learn
Consumers Energy Company
Consumers Energy is the primary subsidiary of CMS Energy. In December 2020, Garrick J. Rochow became President and CEO of the company after a 17-year tenure. The company's primary distribution voltages are 2.77/4.8Y, 4.8/8.32Y, 7.2/12.47Y, 7.97/13.8Y, and 14.4/24.9Y. Consumers Energy owns and operates 13 hydroelectric facilities or dams along five rivers in Michigan, with a combined generating capacity of about 130 megawatts, serving around 70,000 people. The company also has wind farms, a nuclear power plant, and coal-fired plants as part of its utility-owned generation portfolio.
In 2011, Consumers Energy received approval to establish a 100-megawatt wind energy facility in Michigan's Mason County, called Lake Winds Energy Park. Three years later, the company announced its second wind farm in Tuscola County, with a $250 million investment, named Cross Winds Energy Park. By 2015, ten percent of its electricity was produced from renewable sources. In 2018, Consumers Energy announced plans to retire all coal-burning plants by 2040, with a target of 40% renewable power by that time.
In terms of its natural gas distribution, Consumers Energy provides a total of 373 billion cubic feet of natural gas annually to its residential and business customers. The company serves over 1.7 million customers through a network of more than 27,000 miles of transmission and distribution pipelines.
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DTE Electric Company
DTE Energy, the parent company of DTE Electric, is a diversified energy company based in Detroit. It is involved in the development and management of energy-related businesses and services in the United States and Canada. DTE Energy's portfolio includes non-utility energy businesses focused on power and industrial projects, energy marketing, and trading. The company has a long history in the region, with its earliest direct corporate ancestor, the Edison Illuminating Company of Detroit, founded in 1886. By the turn of the century, it shared responsibility for commercial electric power in Detroit with the Peninsular Electric Light Company.
DTE Energy has made significant investments in renewable energy projects. Since April 2021, DTE Electric has operated 18 wind and 31 solar parks, producing a total of 1,760 megawatts of clean energy and powering 670,000 homes. DTE is Michigan's largest investor in and producer of wind energy, with enough renewable energy production to power over 500,000 homes. The company has also invested in solar energy, with notable projects including the Lapeer Solar Park in Lapeer, Michigan, and a 10-acre solar installation in Detroit on the site of the abandoned O'Shea Park.
Despite its public support for carbon reduction goals, DTE Energy has faced criticism from environmental groups for lobbying against certain clean energy initiatives. According to records, the company spent $3.2 million between 2018 and 2022 on efforts related to renewable energy legislation while also advocating for policies that could slow the transition to renewable energy. The company has also been criticized for its involvement in local elections and the use of "dark money groups" to extend its political influence.
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Upper Peninsula Power Company
The Upper Peninsula Power Company, also known as UPPCO, is an electrical and power company that serves more than 54,000 customers in Michigan's Upper Peninsula. The UPPCO service area includes 10 counties in the central and western portions of the Upper Peninsula: Alger, Delta, Marquette, Menominee, Schoolcraft, Baraga, Houghton, Iron, Ontonagon, and Keweenaw. The company's distribution network includes approximately 3,300 miles of both single and three-phase power circuits served by 58 distribution substations.
UPPCO operates multiple electrical power generation plants, primarily hydroelectric dams. The company generates approximately 20% of the electrical power distributed to its customers, with the remaining power purchased from Consumers Energy in lower Michigan and the Wisconsin Energy Corporation (WE Energies). Some of UPPCO's operational facilities include the Victoria Dam in Rockland, Michigan, with a capacity of 12.2 Megawatts, the Boney Falls Dam in Cornell, Michigan, with a capacity of 4.1 Megawatts, and the Prickett Hydroelectric Dam in Baraga, Michigan, with a capacity of 2 Megawatts.
In addition to its power generation and distribution operations, UPPCO also prioritizes stewardship and community engagement. The company has initiatives such as the Republic Solar Project, where it develops a former mine site into a solar power project. UPPCO also offers cost-saving initiatives like promoting heat pumps as an efficient option for heating and cooling and providing appliance recycling drop-off days, where customers can recycle old appliances and even save up to $250.
UPPCO is proactive in warning its customers about potential issues and safety hazards. For example, the company reminds customers that seasonal weather patterns can cause power outages, tree damage, and dangerous travel conditions. They also emphasize the importance of not touching downed power lines, as they can be extremely dangerous, and provide contact information for reporting such incidents.
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Renewable energy choices
Michigan has a diverse market of licensed alternative electric suppliers (AES) to choose from. The state's major electric companies include Consumers Energy Company, DTE Electric Company, Upper Peninsula Power Company, Upper Michigan Energy Resources Corporation, and Cloverland Electric Cooperative.
Michigan has committed to achieving a net-zero carbon dioxide emission goal and aims to transition to 100% clean energy by 2040. The state has access to various renewable energy sources, including wind, solar, biomass, waste-to-energy, and hydroelectric power.
Wind energy is Michigan's most prominent renewable energy source, supplying 64% of the state's renewable electricity and about 7% of its total net generation from all sources. The state has 34 wind farms, primarily located between Saginaw Bay and Lake Huron, with a total generating capacity of nearly 3,800 megawatts.
Solar energy is also growing in Michigan, with an increase in utility-scale solar generation of 53% in 2023. The state added 11 solar farms that year, and more are expected to come online by 2025, adding an additional 1,280 megawatts of solar power capacity.
Biomass is another significant renewable energy source for Michigan, contributing 15% of the state's renewable electricity generation and about 2% of its total generation from all sources. The state has 35 biomass power plants, with a combined generating capacity of 490 megawatts.
Michigan also has access to other renewable energy sources, such as waste-to-energy and hydroelectric power. The state's Renewable Energy Certification System (MIRECS) tracks and certifies renewable electricity generation, providing incentive credits for on-peak and off-peak renewable energy generation.
While Michigan faces natural disadvantages in its carbon neutrality efforts, the state is actively driving the expansion of renewable energy sources. The Charge Up Michigan Program, for example, provides grants to expand the state's electric vehicle charging network.
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Licensed alternative electric suppliers (AES)
Michigan's Electric Customer Choice program allows you to choose your power supplier from a diverse market of licensed alternative electric suppliers (AESs). This freedom of choice is available to electric business customers of Consumers Energy Company, DTE Electric Company, Upper Peninsula Power Company, Upper Michigan Energy Resources Corporation, or Cloverland Electric Cooperative.
You can choose to switch to an AES or remain with your current electric utility provider and continue to pay the existing regulated rates. However, it is important to note that under state law, only up to 10% of an electric utility's average weather-adjusted retail sales from the previous calendar year can be served by an AES. If this cap is reached, new customers will be placed in a queue.
Regardless of your choice of AES, your local electric utility will continue to deliver your power supply. The rates of AESs are not regulated by the MPSC, except for Cloverland Electric Cooperative, whose rates are member-regulated.
To inquire or complain about an AES, you should first contact the licensed AES. For further assistance, you can refer to the MPSC's consumer tip to learn more about your rights and options under Michigan's Electric Customer Choice program.
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Frequently asked questions
You can search for your electric utility provider by city or township, or by checking the service area map on the Michigan.gov website.
Some of the electric companies in Michigan are Consumers Energy Company, DTE Electric Company, Upper Peninsula Power Company, Upper Michigan Energy Resources Corporation, and Cloverland Electric Cooperative.
The Electric Choice program allows customers to purchase their electric supply from alternative electric suppliers licensed by the MPSC. However, participation in this program is currently limited by law.
