Current Utility Rates

Archived Utility Rates

University utility customers,

Utility rates have been approved for Fiscal Year 2023.

Our goal is to supply safe, reliable, and cost-efficient utility services to the campus community.  Over the past ten years, enterprise rates for steam and generated electricity have averaged 1.2% annual increases.  A few key factors are currently impacting the enterprise:

  • Spot natural gas prices have increased significantly
    • 65% of our load for FY23 was purchased in advance at half the current spot price to offset market volatility.
  • Improving reliability and reducing greenhouse gas emissions
    • The Central Power Plant expansion project substantially increases reliability of central campus electric and steam systems.
      • Over the next ten years, reduce carbon emissions by more than 400,000 metric tons.
    • Increased reliability
      • New DTE 120kv substations on Huron Parkway and State Street. Upgrades to university owned and operated electrical switching stations across campus. 
    • Voluntary Purchased Power Agreement (PPA) DTE MIGreenPower program to purchase 40% (200,000,000 kwh/year) of electricity from renewable sources.

Utility Enterprise Rates

Steam and electric rates are established at levels to recover all operations and maintenance costs for generation and distribution, reserves for major repairs and replacements, debt, and fuels.

U-M Utility Enterprise Rates: FY22 FY23
Central Power Plant steam (per 1000 lbs) 16.110 17.400
CPP, North Campus, Ingalls electric (per kwh) 0.088 0.095

Direct-Purchased Utilities

Utilities purchases, manages, and processes all direct-purchased utilities, which are supplied and metered by an outside utility company and distributed directly to the university customer.  These prices fluctuate, and the rates below are our best estimates at this time.

Estimated Direct-Purchased utilities costs (Including charges): FY22 FY23
Water, Sewer & Storm (per ccu)  12.874 13.628
Natural Gas (per ccf) 0.365 0.503
Electric (per kwh) 0.089 0.090

Service charges are applied to direct-purchased utilities to recover overhead, programming, university distribution maintenance, and targeted infrastructure improvements.  See the utilities website for detail on these rates.

Please circulate this memo to appropriate individuals in your unit and contact Judy Witter at jawitter@umich.edu with updates to the email list. If you would like additional information or have questions, please visit our website (utilities.fo.umich.edu) or feel free to contact us.

Thank you,
Brian & Judy

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