Albion Recorder & Morning Star News

Why High Electric Rates Don’t Always Mean High Bills

Consumers Energy Sr. Community Affairs Manager Greg Moore explains how electricity rates, energy use and customer choices affect monthly electric bills during a June 15 presentation to Albion City Council.

By Maggie LaNoue, Contributing Writer

When electric bills go up, many people feel there is little they can do about it.

Consumers Energy Sr. Community Affairs Manager Greg Moore offered a different perspective during a June 15 presentation to Albion City Council. While customers cannot control utility rates, he said they often have more influence over their monthly bills than they realize.

Moore spent nearly 38 minutes explaining why high electric rates do not always lead to high electric bills, how Michigan’s changing economy affects electricity costs, and why the choices residents make at home still matter.

“People talk about, ‘Your rates are high, your rates are high,'” Moore said. “You know what? They are.”

However, Moore said Michigan residents generally use less electricity than customers in many warmer states, helping keep monthly bills lower than the state’s rates alone might suggest.

“Because of our geography, we don’t have as many hot weather days, so people aren’t using air conditioning as much in Michigan as they are in Texas, Alabama, Tennessee, and Mississippi,” Moore said. “They’ll start in April and go through October. We don’t. We may have two months, three months max.”

The distinction between rates and bills was one of the central themes of the presentation. A utility rate is the price charged per unit of electricity. A bill reflects both the rate and the amount of electricity used.

Moore said Michigan has experienced some of the largest declines in electricity use in the nation as residents adopt more efficient lighting and appliances and find other ways to reduce consumption.

“A lot of you are doing a great job with saving energy,” Moore said.

He also pointed to the loss of major industrial customers over several decades. Utilities still must maintain power plants, substations, transmission lines and local distribution systems even when less electricity is being sold.

Using a warehouse-shopping analogy, Moore explained the basic economics behind electricity rates. When the cost of maintaining the grid is spread across fewer customers using less electricity, the cost per unit rises.

“The more the cost over the fewer the people, the higher the rate,” Moore said.

Moore said Michigan utilities have experienced some of the nation’s largest declines in electricity use even as household electric bills have risen more slowly than in many other states.

“We’ve experienced some of the largest declines in use, both DTE and Consumers, of any state in the country,” Moore said.

A chart presented during the session showed Consumers Energy as the top taxpayer in Calhoun County in 2026, with a taxable value of more than $198 million across 316 parcels countywide.

Moore also described where Consumers Energy’s capital spending is going. “Seventy-five cents of every dollar we are promising and pledging to you is going straight into the grid,” he said, pointing to investments in tree trimming, stronger poles and wires and automated equipment designed to restore power more quickly after outages.

The presentation also touched on practical ways customers can reduce their own costs. Moore encouraged residents to pay attention to what he called the summer “summertime overtime” period between 2 p.m. and 7 p.m. on weekdays, when electricity demand is highest.

“If you’ve got to do laundry or your dishes or something, you can put it off till after seven or do it before 2 o’clock in the afternoon,” Moore said. “You’re going to save money.”

Other examples discussed included reducing unnecessary energy use, keeping blinds or curtains closed during hot afternoons, and using more efficient appliances and lighting. Some families also choose to batch-cook meals on weekends, use microwaves instead of ovens during hot weather, or shift household chores to evenings and weekends.

Moore also discussed programs available to customers who are having difficulty paying their electric bills. Consumers Energy offers payment assistance, flexible payment arrangements, and other support programs for qualifying customers.

Moore’s broader message was that while customers cannot control statewide electric rates, they are not powerless. Michigan residents have already significantly reduced electricity use over the past several decades through efficiency improvements and changes in habits. Small adjustments in how and when electricity is used can add up over time while maintaining a comfortable home.

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