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Ann Arbor

Written By: Adam Cain

Last Updated: 11/10/2020

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Electricity Rates in Ann Arbor, Michigan

Michigan's electric rates are often the highest of all states in the Midwest and are consistently above the national average. But what many Ann Arbor customers don't know is that they can save on their high electric bills by switching to a company a retail electricity provider that offers a plan with a lower rate than what the default utility, Consumers Energy is charging you.

If you're still purchasing your electricity from Consumers Energy, you should learn about your options so that you can actually lower your electric bills. Not all residents and businesses in Ann Arbor are able to make the switch, however. Consumers Energy is only permitted to allow about 10% of its customers to select another provider of electricity. If the cap is full, you'll be placed on a waiting list and can make the switch when your number is up.

Electricity Providers in Ann Arbor

There are several retail electricity providers that serve the Ann Arbor area. To find ones that serve your home or small business, type your ZIP Code into the free Compare & Switch tool at the top of this page. After you select your utility, a list of providers in your area will appear.

Medium and large sized businesses will need to fill out the Business Comparison Form, located here. We'll contact our network of providers to negotiate the best deal for you.

As your browse through the providers, you will see that many different types of plans are being offered with different rates. This is because the plans vary by more than their rates. When viewing different plans, compare the following:

1. Electricity Supply Rates

Look for a lower supply rate than what Consumers Energy is charging you.

The supply rate that you're currently paying can be found on your most recent Consumers Energy electric bill, under Electric Power Supply Charges. You'll see that this rate is expressed in cents per kilowatt hour (kWh) and is used to determine the cost of your electric supply. In the example below, the electric supply rate is 7.0923 cents/kWh. Do notice that this customer exceeded the allocated kWh usage of 600 kWh. Generally, this doesn't happen, but be sure to check your statement and factor this in when comparing providers.

2. Variable and Fixed Rates

Electricity plans offer either a fixed or variable rate. Plans that offer fixed-rate will show you one rate that you will pay for the length of your contract. Variable-rate plans have fluctuating rates that vary along with wholesale electricity and can go up or down each month. Chose whichever you are the most comfortable with.

3. Contract Length

Contracts can last from 3 months to 3 years. Ideally, you'd want to select a plan that is 6 to 24 months. Choose a longer plan if you think Consumers Energy's rates will go up soon or choose a short plan if you think that their rates will go down soon.

4. Other Features of Plans

Look for plan features that add even more value. Many providers offer incentives such as sign-on bonuses and discounts to energy related products and services such as HVAC repair and home and business energy auditing. Many even offer rewards programs where you can earn points towards cash-back, free electricity, airline miles, and more.

5. The Source of Electricity

When browsing, you'll see that some providers offer electricity supply that comes from partial or 100% renewable sources such as wind and solar. These green plans are not only good for your community and the general environment, but they're easy on your wallet as well since the price of renewable electricity has considerably gone down over the past several years.

How to Switch to a New Electricity Provider

Sign up with the new provider either through the Compare & Switch tool or by giving them a call. You'll need to have a copy of a recent Consumers Energy bill on hand so you can provider your account information.

As a reminder, the service and reliability of your electricity will never change if you buy your electricity from a retail electricity provider instead of the utility, Consumers Energy. Consumers Energy will still deliver your electricity to your home or business, send your bill, and maintain all the hardware that keeps your lights on. All that really changes for you is a new rate on your monthly electric bill.