New Report Finds Michigan Utility Reliability Worse Than Ever

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Michigan residents continue to face some of the nation’s longest power outages and highest electricity costs, according to the 2025 Utility Performance Report.

Reliability – Michigan Among the Worst

Michigan ranked second-worst in the nation for outage duration in 2023, according to the Citizens’ Utility Board 2025 Utility Performance Report. While the number of outages per customer was only slightly above the U.S. average, the length of those outages was the longest in the country.

The state’s two largest utilities, DTE and Consumers Energy, were among the worst-performing investor-owned utilities in the nation when it came to outage duration. Together, they serve more than 80 percent of Michigan households, and their poor results weigh heavily on the state’s overall standing.

Looking at the longer trend, Michigan’s five-year averages place it consistently near the bottom of the national rankings, and worse than any other Great Lakes state.

Why It’s Happening

Outages are often tied to severe weather events, but the report notes that Michigan utilities have been unable to respond quickly or effectively when storms hit. This problem has grown more serious as climate change brings more frequent and intense weather.

Because DTE and Consumers Energy dominate the market, their poor performance drags down the state’s overall reliability measures. By contrast, municipal utilities, such as Chelsea, serving smaller cities and towns, tend to perform best. Rural electric co-ops often struggle as well, given their large service areas and overhead lines, but their numbers affect fewer people than the big investor-owned companies.

Regulators Pushing Back

The Michigan Public Service Commission (MPSC) has taken a tougher stance in recent years. It has ordered DTE and Consumers to submit new investment plans, required third-party audits of their operations, and directed them to follow corrective actions.

Preliminary numbers suggest reliability in 2024 was better than in 2023. However, the report cautions that some of the improvements may be due to milder weather conditions, not just utility upgrades.

Affordability – High Costs for Electricity

On top of reliability issues, Michigan residents pay some of the highest electric rates in the Midwest. In 2023, the state’s residential electricity prices ranked 11th-highest in the nation.

The average Michigan household spent $2,557 on energy in 2023, nearly 4 percent of household income. That is well above the national average and a growing burden for families already frustrated by outages.

Natural gas remains relatively cheap in Michigan compared to other states, which helps offset overall costs. Still, high electricity bills continue to push up the state’s energy burden.

Environmental Performance

Michigan still leans heavily on fossil fuels, though progress is being made. A series of coal plant retirements has begun to reduce harmful emissions.

Even so, Michigan ranked 7th-highest in the country for carbon dioxide emissions from the power sector in 2023 and 6th-highest for nitrogen oxides, despite being only the 10th most populous state.

Looking ahead, new state laws require utilities to generate 50 percent of their electricity from renewable sources by 2030. In 2023, renewables made up just 14 percent. The planned restart of the Palisades Nuclear Plant is expected to give the state a significant boost in clean generation.

Bottom Line for Citizens

For Michigan residents, the message is clear:

• The state ranks near the bottom for reliability, with outages that last longer than almost anywhere else in the country.
• Electricity rates are high, so when the power goes out, the frustration is compounded by steep monthly bills.
• Regulators are cracking down on DTE and Consumers Energy, but meaningful improvements may take years to show up.
• Michigan’s energy mix is starting to shift toward cleaner power, but reliance on coal and delays in renewable adoption mean pollution levels remain high.

Who’s Behind the Report

The Citizens Utility Board of Michigan (CUB of MI), founded in 2018, is a nonpartisan nonprofit that represents residential energy customers across the state. The group works to keep rates fair, oppose unjustified increases, and promote cost-effective investments in energy efficiency and renewable energy. Supported by philanthropic contributions, the State of Michigan’s Utility Consumer Representation Board, and individual donations, CUB of MI advocates for both affordable utility bills and the environmental benefits of cleaner energy.

Bottom Line

For now, the findings confirm what many households already feel—Michigan families are paying more while getting less reliable service.

The entire report can be found at https://cubofmichigan.org/