Michigan Senate Committee Hears Testimony on Utility Rate Hike Bill to Limit Frequency of Increases

West Michigan Families Face Utility Rate Roller Coaster as Legislature Considers Change

A Michigan Senate committee heard testimony Thursday on legislation 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 this frequency has led energy rates to constantly rise.

Senator Proposes Three-Year Cap on Rate Hikes

Bill sponsor state Senator Kevin Hertel (D-St. Clair Shores) said residents cannot afford this trend. What we have 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 this scenario and make sure we are 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 request is submitted. If they do not act, that request gets automatically approved. Hertel said that is not enough time for the public to weigh in and have regulators properly decide. He said a three-year system would be fairer.

We are cramming everything into 10 months. It does not allow for the proper planning. I do not think it gives the people of our state a true voice in the process. It is not transparent, Hertel said.

Utility Companies Weigh In With Written Statement

The state largest utility companies did not weigh in on the bill during Thursday 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 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 percent 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.

MPPC Chair Suggests Performance-Based Mechanisms

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 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 would like to see some of those other concerns addressed during the process of working on the rate-hike legislation.

Sources:

• https://www.wemu.org/michigan-news/2026-04-17/utility-rate-hike-bill-appears-before-michigan-senate-committee
• https://www.michiganpublic.org/politics-government/2026-04-17/utility-rate-hike-bill-goes-before-senate-committee