These are the current utility rates which fund commodity purchases, sustain operations and maintenance, and capital renewal and expansion. They are updated annually for each fiscal year beginning on July 1st.
Explanation of Changes
In preparation for fiscal year 2027, we are sharing information with you regarding utility rates that support ongoing delivery of safe, reliable energy across campus.
The FY27 rate adjustments support operations, continued progress toward campus-wide sustainability goals, and our 10-year capital and infrastructure renewal plan. This year, in addition to targeted boiler replacements and electrical system upgrades across campus, we will replace aging water and sewer piping in key campus corridors, upgrade cooling systems, and complete structural repairs and piping replacements within segments of the campus steam tunnel system
Utility Enterprise Rates
Steam, geo-exchange 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 | FY27 |
|---|---|
| Central Power Plant steam (per 1000 lbs) | 25.340 |
| Geo-Exchange (per btu) | 0.021 |
| CPP, North Campus, Ingalls electric (per kwh) | 0.139 |
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 surcharges) | FY27 |
|---|---|
| Water, Sewer & Storm (per ccu) | 15.683 |
| Natural Gas (per ccf) | 0.490 |
| Electric (per kwh) | 0.104 |
The U-M Utility Services Enterprise purchases, manages and processes all purchased utilities. Service charges are applied to direct-purchased utilities to recover overhead and university distribution maintenance.
| Service Charges on Direct-Purchased Utilities | FY27 |
|---|---|
| Administrative (on all utilities) ¹ | 2.30% |
| Green Power Initiative (PPA) Surcharge | 6.75% |
| Water, Sewer, Storm maintenance ² | 17.50% |
| Direct electric maintenance | 0.40% |
¹ Examples include salaries, office expenses, computer hardware and software, legal services, & MISS DIG.
² Covers costs for infrastructure improvements and the replacement of aging piping.
Historical Utility Rates
Previous years rates can be found on the Historical Utility Rates page.
