Cold Weather, Rate Hikes Combine to Push Lansing-Area Electric Bills Higher
If it seems like your energy bills have been high over the past few months, it isn’t your imagination. Prescheduled rate hikes for Lansing Board of Water & Light, or BWL, customers and an especially cold winter have increased energy costs.
BWL is the sole electric utility provider for most East Lansing and Lansing residents, which some residents say is problematic as monthly electric bills topping $1,000 have been reported. The lack of competition creates even more of a need for transparency and oversight of the municipally-owned utility, some residents say.
“I don’t think it’s the fairest thing in the world when you don’t have a whole lot of options to get services, you have to go through them [BWL],” said Brandy Hannah, 43, who moved to Lansing in 2021.
Unlike Consumers Energy or DTE, which are regulated by the Michigan Public Service Commission, BWL rate increases are determined by an eight-member Board of Commissioners. These members are selected by the Lansing mayor and approved by the Lansing City Council.
In 2024, the board approved two rate hikes that took effect in October 2024 and again in October 2025. The average residential electric rate increased 7.8% in 2024 and 6.8% in 2025, while residential water rate increased 9.5% in 2024 and 9.2% in 2025.
Prior to the rate increases, the Lansing State Journal reported BWL was losing money providing energy to residential customers.
“I definitely was looking at that [bill] thinking, ‘wow my bill has gone up,’ and I live here alone, so why is my bill going up?” Hannah said.
Like Hannah, Antonio Diaz, 26, who has lived in Lansing his whole life, was unaware of the rate hikes and said more can be done to proactively notify customers before the increases hit their statements.
“When you’re the only energy supplier in the city of Lansing you can really take advantage of people, and I think there needs to be more oversight on that,” Diaz said.
Hannah emphasized that for low-income individuals, the compounding pressure of rate hikes, security deposits and reconnection fees can become a mounting issue.
“They base your initial bill off your credit score, and what I did not know was that I was going to be slapped immediately with a $400 deposit,” Hannah said. “Throughout the year they [BWL] claim you’re going to get that money back … as long as you don’t have a disruption in service.”
When she first moved to Lansing, Hannah worked as a crisis stabilization specialist at a local community agency. She primarily served clients in distress who suffer from chronic mental health crises, putting them at increased risk of facing housing insecurity.
“When they [low income individuals] can’t afford to pay their bill, [because] their bill gets out of hand, their services get cut off, and then they get slapped with the reconnection fee or the deposits … they’re therefore getting steady behind on services they need,” Hannah said.
Customers must have had service for 12 consecutive months with no disruptions, meaning services may not be disconnected due to nonpayment, in order to receive the deposit back. BWL Public Relations & Marketing Manager Amy Adamy shared that BWL is currently holding 10,028 residential customer security deposits, totaling approximately $2.5 million.
Residential customers who miss a payment are charged $60 for the reconnection fee, and deposits are typically two times the average monthly bill. Security deposits are charged in cases when someone has poor credit or has a history of not paying utility bills.
In addition to rate hikes, Michigan’s extreme cold and hot temperatures threaten consumers’ wallets. Adamy said in an email to ELi that, “This year’s sustained cold temperatures have caused bills to increase more.”
While frustrating for residents, higher bills during extreme temperatures are not exclusive to BWL customers. Planet Detroit reported on how Michigan’s aging power grid is not capable of sustaining the demand which can result in blackouts.
Extreme hot or cold temperatures cause strain on the power grid because of the high demand while simultaneously weakening its efficiency and reliability.
In prior summers, Hannah would run the central air when the temperatures got unbearably hot, but when her bill averaged $300 last summer, she decided not to turn it on anymore.
BWL encourages customers facing financial hardship who are unable to afford their bill to contact the customer service team at 517-702-6006 to set up a flexible payment arrangement. Additionally, BWL is hosting its bi-annual community resource fair on April 15.