Michigan’s partially deregulated energy market allows commercial customers to choose their electricity and natural gas suppliers. By shopping around and locking in a fixed rate, businesses can reduce utility costs and gain budget stability.
Electricity Market in Michigan
Michigan’s electric choice program gives eligible businesses the option to purchase electricity from alternative suppliers instead of relying on the local utility’s default supply. DTE Electric (Detroit Edison) and Consumers Energy deliver power through their lines and continue to handle billing and service, but the commodity can be purchased from a competitive supplier. Alternative energy suppliers offer a variety of fixed-rate and variable-rate plans so companies can lock in low prices and protect against market volatility.
Natural Gas Market in Michigan
Several natural gas utilities serve Michigan, including DTE Gas, Consumers Energy, Michigan Gas Utilities, and SEMCO Energy Gas Company. Through the natural gas choice program, commercial customers can select an Alternative Gas Supplier (AGS) to provide the fuel while the local utility still delivers it through its pipelines. Choosing an AGS allows businesses to secure a fixed per-therm rate, avoiding seasonal price spikes and improving budget certainty.
Commercial Energy Tips for Michigan Businesses
- Obtain quotes from multiple electricity and natural gas suppliers to compare rates and contract terms.
- Check for pass-through charges, material change clauses, and early termination fees before signing an agreement.
- Work with an energy advisor who understands Michigan’s regional transmission and distribution networks to secure competitive pricing.
- Implement energy efficiency projects and demand-response programs to reduce consumption and maximize savings.
