Ann Arbor winter utility bills: Rates and heating assistance

Ann Arbor-area households heating with natural gas could see lower seasonal bills this winter, but regional forecasts do not guarantee savings for individual utility customers.

The U.S. Energy Information Administration’s 2026-27 Winter Fuels Outlook projects Midwest natural gas households will spend about 10% less this season than last, thanks to lower fuel prices and temperatures similar to last year. Nationally, homes heated with natural gas can expect to pay an average of $640 over the five-month heating season, November through March, down 9%.

Electricity-heated homes face the opposite trend. The EIA forecasts a 4% increase in winter electricity bills nationally, driven by a 3% rise in residential prices. Midwest electric-heated homes face a projected seasonal cost of $1,380, up 3%.

“Relatively high natural gas inventories entering the winter season provide a cushion for heating demand, while households that rely on heating oil face higher prices because distillate markets remain tight,” EIA Administrator Tristan Abbey said, as reported by Quartz.

Michigan rate hikes add up

The federal projections use retail prices that include delivery costs. They are regional averages, rather than forecasts for individual Michigan utilities or households. Actual bills depend on local rates, weather and usage.

The Michigan Public Service Commission in February approved a $242.4 million revenue increase for DTE Electric, adding $4.93 per month to a typical residential bill for a customer using 500 kilowatt-hours monthly. The rates took effect March 5. The city of Ann Arbor intervened in that case, according to the commission. The order also approved an undergrounding pilot project in Ann Arbor to coordinate with the city’s planned road replacement work.

On the gas side, the commission in September approved a $74.5 million rate hike for DTE Gas customers, adding $2.87 per month to a typical residential bill for a customer using 75 hundred cubic feet monthly, according to the commission’s announcement. DTE announced plans to file for yet another gas rate increase in November, according to the attorney general’s office.

Consumers Energy, which serves 1.8 million natural gas customers across Michigan, received commission approval in October for a $139.2 million gas rate increase. A typical residential customer using 75 hundred cubic feet monthly will see a $3.92 monthly increase, or 4.33%, according to the commission. The rates took effect Nov. 1.

Michigan Attorney General Dana Nessel said she had urged the commission to limit Consumers to a 3.5% average rate hike, according to her office’s announcement.

How to get help in Washtenaw County

Michigan offers several energy assistance and shutoff protection programs.

State Emergency Relief: A crisis program for households with a past-due bill or shutoff notice and income at or below 150% of the federal poverty level. The state lists separate limits of $15,000 in cash assets and $15,000 in material assets. Residents can apply online through MI Bridges, according to the commission’s assistance guide.

Michigan Energy Assistance Program: The program helps eligible households with bill payments, affordable payment plans and energy self-sufficiency services. Income eligibility is at or below 60% of the state median income. Households receiving SNAP, SSI, WIC, Head Start or other specified public assistance may be categorically eligible. Applicants must also receive electricity from a utility participating in the program’s funding system, according to the commission.

Winter Protection Plan: Michigan’s shutoff protection program runs Nov. 1 through March 31. It covers seniors 65 and older regardless of income and low-income customers at or below 150% of the federal poverty level, according to state guidance. Low-income participants must make monthly payments based on 7% of their estimated annual bill and arrange repayment of existing arrears. The plan does not erase unpaid bills. Contact your utility to enroll. DTE says customers cannot apply for State Emergency Relief while enrolled in its Winter Protection Plan.

Home Heating Credit: A state tax credit for low-income homeowners and renters. Forms for the 2026 tax year are expected in mid-to-late January 2027, based on state guidance. Check the Michigan Department of Treasury for availability. Customers of state-regulated utilities must notify their utility after filing to receive heating-service shutoff protection while the credit is processed. Bills remain payable, according to utility guidance.

Local resources

Several Washtenaw County organizations offer utility assistance when funding is available:

The Salvation Army, Ann Arbor: 100 Arbana Dr., 734-668-8353. Open Monday through Friday, 9 a.m. to 5 p.m., closed noon to 1 p.m. Call ahead to arrange assistance, according to the Salvation Army’s Great Lakes Division.
Friends In Deed: 1196 Ecorse Road, Ypsilanti, 734-484-4357. Provides short-term utility assistance for Washtenaw County residents. Call first to arrange assistance. Its requirements include a utility bill in shutoff status, proof of income and a State Emergency Relief decision notice.
SOS Resource Center: 114 N. River St., Ypsilanti, 734-484-5411.
THAW (The Heat and Warmth Fund): 800-866-8429. Provides energy assistance to income-eligible Michigan households behind on heat or electric bills. Its website currently says new applications, including walk-in applications, are temporarily paused because of high demand.
DTE Energy assistance: 800-477-4747.