A Michigan Senate committee heard testimony Thursday on a bill to stop public utilities from raising their rates multiple times within a three-year span.
Current law lets them apply for higher rates every 12 months. Bill supporters argue that frequency has led energy rates to constantly rise.
Bill sponsor state Senator Kevin Hertel (D-St. Clair Shores) said residents can’t afford that trend.
“What we’ve seen in recent history is that a rate increase is approved, and within weeks you see the next one. And so, we want to address that scenario and make sure we’re getting off this constant roller coaster of rate increases that families across all of our communities are feeling,” Hertel told reporters.
Under the current system, utility regulators have 10 months to evaluate a proposal once a requested is submitted. If they don’t, that request gets automatically approved.
Hertel said that’s not enough time for the public to weigh in and have regulators properly decide. He said a three-year system would be fairer.
“We’re cramming everything into 10 months. It doesn’t allow for the proper planning. I don’t think it gives the people of our state a true voice in the process. It’s not transparent,” he said.
The state’s largest utility companies did not weigh in on the bill during Thursday’s Senate Energy and Environment Committee hearing.
In a written statement, DTE Energy, the largest electric provider in the state, said it recognizes affordability is a major concern for its customers.
“While DTE Energy's electric bills have remained below regional and national averages, we are mindful of the impact any increase can have on our customers and continue to look for ways to manage costs responsibly. Over the past five years, we have worked hard to make the grid stronger and smarter. And, while we still have work to do, we are proud to see that our recent investments in the electric system resulted in 2025 being the most reliable year for customers in nearly two decades and our customers have seen an 88% reduction in time spent without power since 2023,” part of a statement from spokesperson Ryan Lowry read.
Lowry said the company sees it as important to work with lawmakers and policymakers on policies to keep rates low.
The legislation could see some changes, or partner bills introduced, before it gets a final vote in the Michigan Senate.
During a presentation Thursday, the state’s energy regulator told committee members that limiting the frequency of rate hikes was only one step lawmakers could take to improve the system.
Michigan Public Service Commission Chair Dan Scripps suggested taking other steps as well, like focusing on performance measures.
“The details are important, and I think there are a number of places where multi-year rate plans provide for continued investment. If you add in performance-based mechanisms, you can, I think, realize some shared savings,” Scripps said.
Scripps said higher energy costs come down to a combination of higher inflation specifically affecting the energy industry worse than others, higher costs in general, federal policies, like tariffs, and the need to replace aging infrastructure. He estimated Michigan is still catching up from years of disinvestment in the early to mid 2000s.
Hertel told reporters he’d like to see some of those other concerns addressed during the process of working on the rate-hike legislation.
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