Michigan
Power factor correction in Portage, MI
How power factor is billed in Portage, when correcting it is worth doing, and how to get your own bill reviewed.
Which utility serves Portage?
The research identifies Consumers Energy and Indiana Michigan Power (AEP) as delivery utilities serving parts of Portage. Confirm your facility's utility from its bill or service address; postal addresses and service boundaries can differ.
SPLIT. Both Consumers Sheet A-19.00 and I&M M.P.S.C. 18 Sheet A-15.00 name Portage. No primary source says which serves most C&I load.
Territory source: Consumers Energy territory listing · Indiana Michigan Power (AEP) territory listing.
A split service territory
Portage is named in both utilities' territory lists; which one serves a given facility depends on its address. Check your bill. The two utilities treat power factor differently, so the answer depends on which one your bill comes from.
The power-factor rule
Consumers Energy Power-factor rule confirmed
Demand-billed commercial and industrial customers pay a per-kVAR penalty below a 0.875 average power factor, and receive a matching credit above it. Under GSD and GPD it does not apply when billing demand is set by a minimum or ratchet.
GSD General Service Secondary Demand; GP (closed); GPD Large General Service Primary Demand; GPTU; EIP; GSG-2. Applies to: GSD: secondary service, peak demand of 5 kW or more. GPD: primary service, on-peak billing demand of 25 kW or more. The average lagging kilovar demand is compared with the kilovars that a 0.875 power factor would require. The excess is charged per kVAR, and a better power factor earns a credit. A power factor below 0.700 is not permitted, and a higher per-kVAR penalty applies after two consecutive months below it. Under GSD and GPD the adjustment does not apply when billing demand is set by a minimum or ratchet. Penalty or credit = $1.14 per kVAR of difference from the 0.875 level ($5.25 per kVAR after two consecutive months below 0.700).
- Under GSD and GPD, the adjustment does not apply when billing demand is determined by a minimum or ratchet.
- Sheet numbers for GPTU, EIP and GSG-2 should be checked in the current rate book.
As checked 2026-10-03. Consumers Energy's full rules, tariff quotes and sources →
Indiana Michigan Power (AEP) Partly confirmed
In Michigan, I&M's Large General Service rate charges for excess kVA demand, and its Large Power rate charges or credits reactive demand. The rate book we read may since have been replaced, so figures need checking.
Tariff LGS Large General Service; Tariff LP Large Power. Applies to: In the reviewed M.P.S.C. 18 tariff, LGS applies above 100 kW until the 12-month average exceeds 1,500 kW. LP requires billing demand of at least 600 kW and contract capacity of at least 2,000 kW. A successor tariff appears to exist, so current applicability must be checked. LGS: an excess kVA demand charge applies to kVA demand above the greater of 101% of the maximum metered kW or 60 kVA. LP: a reactive demand charge or credit per kVAr above or below 50% of kW. The reviewed LP reactive-demand provision covers leading or lagging reactive demand. Possibly superseded by M.P.S.C. 19 (reported effective June 30, 2026; not reviewed).
- A newer rate book (M.P.S.C. 19, effective June 30, 2026) appears to exist, but we could not read it, so these figures may have changed. Send us your bill and we'll check.
As checked 2026-10-03. Indiana Michigan Power (AEP)'s full rules, tariff quotes and sources →
Is correction worth it in Portage?
Correction may reduce the applicable adjustment. The result depends on the schedule's measurement basis, minimums, ratchets and credit provisions; check the bill before assigning a benefit.
Working with us in Portage
Portage is about 140 miles from our Brookfield office, measured straight-line. Send your bills and available measurement data to discuss the appropriate next step and whether site work can be arranged.
Nearby
Kalamazoo, MI · Benton Harbor, MI · Gary, IN · Merrillville, IN · all service areas