UNDERSTANDING YOUR BILL
Rates
Your Rates Structure, as of 2025
In July 2025, the BLP Board of Directors approved a restructuring of utility electrical rates. For most residential customers, the total BLP electric charges will remain about the same if your electric usage stays consistent.
Two new line items have been added after the total BLP electric charges. These are not new BLP charges but are for newly enacted State requirements for Low-Income Energy Assistance and Energy Waste Reduction. The funds collected will only be used for compliance with these state required programs (more information on these programs are provided below).
The BLP is dedicated to creating a simple, easily-understandable billing experience for our customers. The tables and explanations on this page outline what every line item means on your monthly bill. If you ever have questions about your bill, please don't hesitate to call us!
Understanding Your Electric Bill
The BLP keeps bills simple and easy to understand with only a few, clearly defined line items. The following provides a more detailed explanation of each line item in a residential bill.
Service Charge
BLP maintains electrical equipment 24/7 to serve customers whenever they need power—from substations through power lines and distribution equipment, to the electrical meters on homes and businesses. That’s why every bill includes a fixed monthly service charge that covers a portion of the costs to operate and maintain these essential systems. An independent rate design consultant helps us balance costs between this fixed charge and the usage-based charge. The fixed charge also helps stabilize BLP’s revenue, allowing us to reliably maintain and upgrade the electrical system regardless of seasonal usage fluctuations. Please note that residential customers age 65 and older can apply to receive a $5 discount on this monthly service charge by reaching out to our exceptional customer service team at (616) 846-6250.
kWh Charge
This charge is based on how much energy you use each month. The rate stays the same each month, but the charge varies based on usage, so expect your bill will be higher when you use more electricity like running air conditioning in summer or space heaters in winter. Most of this cost pays for power supply from the regional grid, which currently costs BLP about $20 million annually to serve all customers.
PSCA
The Power Supply Cost Adjustment (PSCA) changes monthly to balance actual power costs (what the BLP pays for energy, capacity, and transmission from the grid) with what’s built into your electric rate.
Your monthly electric rate includes a baseline amount for power supply costs. When actual costs are lower than this baseline, the PSCA appears as a credit on your bill. When actual costs are higher, it appears as a charge. The BLP hasn’t adjusted the baseline rate in several years, which caused the PSCA to grow over time. To keep bills stable, we calculate the PSCA using a 12-month rolling average—so you won’t see large month-to-month swings if your usage stays consistent.
See this fiscal years' PSCA adjustments, by month, in the table below.
Environmental Remediation
This charge, added in 2023, covers the costs of cleaning up coal and coal ash from the J.B. Sims Power Plant. The plant operated from the early 1960s until its retirement in 2020. By starting with a small charge early in the cleanup process, BLP protects customers from large rate increases later while ensuring proper funding for the environmental work. The Board of Directors has restricted all funds collected through this charge to be used only for cleanup of the former coal plant.
Low Income Energy Assistance Fund
The State of Michigan requires that all electric customers in the state be assessed a fixed monthly charge (which began in September 2025) to implement a low-income energy assistance fund. This program is intended to help those in need with their heating and electric bills and is administered through the local Salvation Army.
Additional information can be found on the Payment Assistance page.
MI Energy Waste Reduction
Beginning in 2026, the State of Michigan requires all electric utilities to reduce energy usage by 1.5% from the previous year’s sales. This charge (starting in December 2025) funds compliance with this state rule by implementing a rebate program that encourages customers to implement qualified energy waste reduction projects.
Visit our Sustainability & Rebate Programs page to take advantage of the various incentives on home energy waste reduction projects.
Fiscal Year 2026 Power Supply Cost Adjustment
These PSCA costs vary each month depending on the BLP's cost of power from energy markets. Learn more about the PSCA in the Understanding Your Electric Bill section above.
| Billing Month | $ / kWh |
|---|---|
| July | $0.01294 |
| August | $0.01353 |
| September | $0.01351 |
| October | $0.00216 |
| November | |
| December | |
| January | |
| February | |
| March | |
| April | |
| May | |
| June |