LANSING, Mich. (WZMQ) – A group of Michigan House Democrats is proposing a new package of energy bills designed to reduce utility costs, increase oversight of electric providers and strengthen protections for ratepayers.
The legislation builds on a broader “Ratepayer Bill of Rights” package introduced last year. Lawmakers say the new measures are intended to address concerns about rising utility bills and ongoing reliability issues affecting customers across the state.
Rep. Natalie Price (D-Berkley) said Michigan residents are paying some of the highest utility rates in the Midwest while continuing to experience frequent outages.
“These two things are not a coincidence,” Price said. “They are a result of a system that’s designed to protect utility profits, not rate payers.”
One bill would cap the return on equity, a measure of utility profit authorized by regulators, at 8.2%. Under the proposal, utilities exceeding that threshold would be required to refund customers with interest. Utilities that fail to comply could face fines, with revenue directed to a low-income energy assistance fund.
Another measure would prohibit utilities from charging ratepayers for certain expenses, including executive compensation, lobbying activities, advertising and political spending.
Rep. Erin Byrnes (D-Dearborn) said consumers should not be responsible for covering those costs.
“My bill in this package will prevent utility companies from using funds collected from consumers for political activities like lobbying,” Byrnes said. “It will also ensure that Michigan ratepayers are not bankrolling the opulent lifestyles of utility CEOs and executives.”
A third proposal would require independent audits of utility performance every five years. The audits would examine areas such as grid maintenance, vegetation management, outage performance and overall system reliability.
Rep. Betsy Coffia (D-Traverse City) said the audits would provide lawmakers and the public with more information about how utilities are performing in different regions of the state.
“We should have stats and data that show performance-based,” Coffia said. “And we need stats to back that up so that we can then hold these publicly regulated utilities accountable.”
Supporters of the legislation, including the Michigan League of Conservation Voters, argued the bills would help ensure customer dollars are directed toward improving service rather than increasing corporate profits.
The proposals come as lawmakers from both parties have introduced competing plans aimed at addressing utility rates and reliability. House Republicans earlier advanced an energy package that also seeks to reduce costs for consumers through tax-related reforms and changes to energy policy.
If approved, the Democratic proposals would move through the committee process before receiving votes in the House and Senate. Any bills passing both chambers would then head to Gov. Gretchen Whitmer for consideration.
