Michigan Commercial Electricity Rates for Cannabis Facilities: DTE and Consumers Demand Classes

Michigan vs. the U.S. average

Sector	Michigan, June 2026	U.S. average, June 2026	Michigan vs. U.S.
Commercial	16.63 cents/kWh	14.19 cents/kWh	+2.44 cents, about 17 percent higher
Industrial	9.24 cents/kWh	not in state file

Source: EIA Electric Power Monthly, Table 5.6.A [eia-epm-5-6-a].

DTE Electric delivery classes

Rate	Description	Demand billing (full service)
D3	General Service, energy-only secondary, up to 1,000 kW [dte-rate-book]	No demand charge; 6.670 cents/kWh distribution energy
D4	Large General Service, demand-metered secondary [dte-rate-book]	27.10 dollars/kW distribution; 9.18 dollars/kW capacity; 7.48 dollars/kW non-capacity [dte-rate-book]
D11	Primary Supply, 50 kW minimum [dte-rate-book]	7.15 dollars/kW distribution at primary under 24 kV [dte-rate-book]

D4 includes an on-peak billing-demand ratchet [dte-rate-book]. Figures are from rate book sheets issued through February 19, 2026 orders; confirm against current filings [dte-rate-book].

Consumers Energy delivery classes

Rate	Description	Typical cannabis account
GS	General Service, energy-based [consumers-large-business-rates]	Dispensaries
GSD	General Service Secondary Demand [consumers-large-business-rates]	Mid-sized grows, processors
GP / GPD / GPTU	Primary and time-of-use [consumers-large-business-rates]	Large grows, high load factor

GSD, GPD, and GPTU bill capacity and distribution per kW of on-peak or maximum demand [consumers-large-business-rates]. Confirm current per-kW figures on MPSC No. 14 rate book sheets.

Choice cap and effective rates

Both DTE and Consumers have been at the 10 percent cap since roughly 2010 [mpsc-choice-2025-report]. Most cannabis facilities pay full-service tariff rates, not AES supply. The effective rate is the utility schedule plus surcharges, not a market-priced contract.

In 2025, 5,517 customers totaling 2,172 MW were on choice; 5,101 waited in queue [mpsc-choice-2025-report].

MISO Zone 7 capacity context

DTE and Consumers sit in MISO Local Resource Zone 7 [mpsc-choice-2025-report]. MISO moved to seasonal capacity auctions [mpsc-choice-2025-report]. DTE separately bills capacity demand on D4 full service at 9.18 dollars/kW [dte-rate-book]. Choice customers must arrange capacity or buy utility capacity service [mpsc-choice-2025-report].

Seasonality and climate

Michigan averages 6,745 heating degree days and 579 cooling degree days [noaa-cag-michigan]. Cultivators see high winter kWh and summer kW peaks from dehumidification. Dispensaries see winter HVAC kWh on D3 or GS.

How to read a Michigan commercial bill

1. Customer charge: fixed monthly
2. Distribution energy: cents per kWh
3. Distribution demand: dollars per kW (D4, GSD, GPD)
4. Capacity demand: dollars per kW (D4 full service)
5. Power supply cost recovery: fuel and generation adjustment on full service
6. Energy optimization surcharge: efficiency program funding
7. Taxes

On full service, generation and capacity are bundled into utility charges. On choice service, AES supply replaces the generation component but delivery demand lines remain.

Worked comparison: same load on DTE D4 vs D11

Assume a 350 kW billing demand, 250,000 kWh monthly use, DTE full service, using rate book figures [dte-rate-book]:

Line item	D4 secondary	D11 primary under 24 kV
Distribution demand	350 x $27.10 = $9,485	350 x $7.15 = $2,503
Capacity demand (D4 full)	350 x $9.18 = $3,213	Utility or self-arranged on choice
Non-capacity demand (D4 full)	350 x $7.48 = $2,618	N/A on D11 full-service path
Energy at 16.63 cents/kWh avg	$41,575 [eia-epm-5-6-a]	$41,575 [eia-epm-5-6-a]

Demand-side savings on D11 in this illustration exceed $12,000 per month before other components. Primary infrastructure capex must be weighed against that delta over a 10-year horizon. Confirm all figures against the current rate book and any 2026 MPSC order [dte-rate-book].

Consumers GSD vs GPD selection logic

Rate GSD suits secondary-voltage grows with moderate load factor [consumers-large-business-rates]. Rate GPD targets primary-voltage customers with high load factor who can run equipment at higher voltage [consumers-large-business-rates]. GPTU adds time-of-use pricing for operations that can shift non-critical load off on-peak periods [consumers-large-business-rates]. A processor running weekday batches might evaluate GPTU if weekend load is minimal.

Why Michigan averages exceed Ohio

Ohio commercial averaged 13.77 cents/kWh and Michigan 16.63 cents/kWh in June 2026 [eia-epm-5-6-a]. The 2.86 cent gap reflects higher regulated delivery demand charges, full-service supply bundling, and limited competitive pressure while the cap is full [mpsc-choice-2025-report]. Ohio cultivators on CRES contracts can shop supply immediately [oh-energychoice-glossary]; Michigan cultivators optimize tariff first.

Indiana Michigan Power and Upper Peninsula notes

Southwest Michigan cannabis facilities on Indiana Michigan Power sit in PJM with the same 10 percent cap mechanics [mpsc-choice-2025-report]. Upper Peninsula utilities are small territories with limited cannabis presence but identical cap rules [mpsc-choice-2025-report]. Multi-state operators should not assume Lower Peninsula rate structures apply in the UP.

Tracking MPSC rate cases

Both DTE and Consumers file periodic rate cases that update per-kW figures on D4, D11, GSD, and GPD [dte-rate-book] [consumers-large-business-rates]. Cannabis facilities with long-term pro formas should note the docket number on their current bill and monitor MPSC orders. A rate case can move delivery charges independently of MISO energy markets. Confirm class placement whenever MPSC orders revise sheet D-24.00 or D-51.00 figures [dte-rate-book] [consumers-large-business-rates].

DTE demand charge summary on full service

Rate	Demand charge type	Illustrative figure (verify in rate book)
D3	None (energy-only)	6.670 cents/kWh distribution energy [dte-rate-book]
D4	Distribution + capacity + non-capacity per kW	$27.10/kW distribution on billing demand [dte-rate-book]
D11	Primary distribution per kW	$7.15/kW under 24 kV [dte-rate-book]

Figures change with each MPSC order [dte-rate-book]. Confirm against the current DTE Electric Rate Book before quoting.

Consumers GSD/GPD structure

GSD, GPD, and GPTU bill capacity and distribution per kW of on-peak or maximum demand [consumers-large-business-rates]. Large Economic Development rate requires 35,000 kW commitment, far above cannabis scale [consumers-large-business-rates]. Class C grows evaluate GSD vs primary GPD/GPTU [consumers-large-business-rates].

Reading a Michigan full-service bill

Full-service bills bundle generation into power supply cost recovery and energy optimization surcharges [consumers-large-business-rates]. Demand lines on GSD or D4 appear separately [dte-rate-book]. Normalizing cents per kWh requires dividing total bill by total kWh, not using commercial average alone [eia-epm-5-6-a].

Seasonality table

Season	Load driver	Rate impact
Winter	Heating, make-up air, dehumidification	High kWh [noaa-cag-michigan]
Summer	Dehumidification, modest cooling	High kW on D4/GSD [noaa-cag-michigan]
Shoulder	Maintenance, batch scheduling	Opportunity to cut peaks [dte-rate-book]

Cap tracker links

Monitor DTE and Consumers cap tracking systems weekly when near queue top [dte-electric-choice] [consumers-electric-choice]. Attrition frees allotments unpredictably [mpsc-choice-2025-report]. Cannabis load rarely exits choice voluntarily [mpsc-choice-2025-report].

Rate book verification discipline

DTE D4 and D11 figures from MPSC orders [dte-rate-book]. Consumers GSD sheet D-51.00 [consumers-large-business-rates]. Cap administration Case U-15801 [mpsc-cap-data]. MISO Zone 7 capacity on choice [mpsc-choice-2025-report].

Commercial 16.63, industrial 9.24 cents/kWh June 2026 [eia-epm-5-6-a]. Winter kWh high, summer kW high pattern [noaa-cag-michigan]. Monitor DTE and Consumers cap trackers [dte-electric-choice] [consumers-electric-choice].

Use cap data page for official U-15801 procedures [mpsc-cap-data].

Compliance and documentation practices

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports, queue confirmation letters where applicable, CRES contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every June benchmark reset [dte-rate-book]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies to the utility account manager before paying disputed invoices [consumers-large-business-rates]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites so board reporting reflects operational reality rather than blended averages [mpsc-choice-2025-report]. Legal should keep meter assignment language in leases aligned with the license holder entity on the utility account [noaa-cag-michigan].

Use cap data page for official U-15801 procedures [mpsc-cap-data].

Compliance and documentation practices

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports, queue confirmation letters where applicable, CRES contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every June benchmark reset [dte-rate-book]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies to the utility account manager before paying disputed invoices [consumers-large-business-rates]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [mpsc-choice-2025-report]. Legal should keep meter assignment language in leases aligned with the license holder entity on the utility account [noaa-cag-michigan].

Quarterly review cadence

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports, queue confirmation letters where applicable, CRES contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every June benchmark reset [dte-rate-book]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies to the utility account manager before paying disputed invoices [consumers-large-business-rates]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [mpsc-choice-2025-report]. Legal should keep meter assignment language in leases aligned with the license holder entity on the utility account [noaa-cag-michigan].

Related reading

• Michigan hub: market overview
• DTE Energy: utility detail
• Demand charge estimator