Gas vs. electric driving costs · adjust vehicle and price period below
Why is it like this in Michigan?
Michigan's residential electricity rate of about 20.6¢/kWh sits well above the level where electricity beats gasoline for a typical PHEV. DTE and Consumers Energy customers pay roughly 21–22¢/kWh during summer peak hours — the months when driving is highest — and DTE filed for an additional 11% base rate increase in 2025. Despite above-average electricity costs, electricity is still the cheaper per-mile option at the January 2026 baseline. DTE's pending 11% base rate increase could significantly narrow or eliminate that advantage — making Michigan one of the states where the electric-wins case is most at risk from further rate increases.
In the news · Michigan
Michigan regulators approved a $153.8 million Consumers Energy rate hike effective April 2025, adding roughly $2.78/month to typical bills — one of several recent increases making electric-mode PHEV driving more expensive in Michigan.
DTE and Consumers Energy summer peak rates took effect May 2025, with customers paying ~22¢/kWh and ~21¢/kWh respectively during peak hours — well above levels where gasoline wins on per-mile cost for most Michigan PHEVs.
DTE filed for an 11% residential rate hike on top of recent Consumers Energy increases, signaling continued upward pressure on Michigan electricity costs and further eroding the economics of PHEV electric-mode driving.
Curated coverage of Michigan's EV/PHEV cost, policy, and infrastructure story. External links open in a new tab.
Midwest region comparison
| State | Electric ¢/mi | Gas ¢/mi | Cheaper | Annual diff |
|---|---|---|---|---|
| North Dakota | 3.3¢ | 6.6¢ | ⚡ Electric | $400/yr |
| Nebraska | 3.6¢ | 6.7¢ | ⚡ Electric | $377/yr |
| Missouri | 3.6¢ | 6.5¢ | ⚡ Electric | $350/yr |
| South Dakota | 4.1¢ | 6.8¢ | ⚡ Electric | $325/yr |
| Illinois | 5.0¢ | 7.6¢ | ⚡ Electric | $320/yr |
| Iowa | 3.9¢ | 6.5¢ | ⚡ Electric | $316/yr |
| Indiana | 4.9¢ | 7.4¢ | ⚡ Electric | $297/yr |
| Minnesota | 4.5¢ | 6.9¢ | ⚡ Electric | $285/yr |
| Kansas | 4.3¢ | 6.4¢ | ⚡ Electric | $247/yr |
| Ohio | 5.3¢ | 7.2¢ | ⚡ Electric | $224/yr |
| Michigan | 5.9¢ | 7.8¢ | ⚡ Electric | $221/yr |
| Wisconsin | 5.5¢ | 6.5¢ | ⚡ Electric | $122/yr |