Commission says legislative change would do more for household energy bills
The Michigan Public Service Commission on Monday released recommendations urging state lawmakers to end the cycle of yearly utility rate increases and rewrite how utilities earn a profit — moves the regulator said would do more for household energy bills than anything the commission could accomplish on its own.
The recommendations were detailed in a letter Commission Chair Dan Scripps sent to Gov. Gretchen Whitmer on July 16. Whitmer had asked the commission in June to identify legislative changes that would lower utility bills, improve reliability, and strengthen energy assistance.
At its core, the commission’s letter advances an argument that ratepayer advocacy groups have pressed for years: Michigan’s regulatory model pays utilities a return on what they build, which the commission says pushes them toward expensive capital projects and away from cheaper options like tree trimming, maintenance, or better use of existing infrastructure.
“The most impactful opportunity may be to counter the inherent bias for utilities to invest in capital projects,” the letter says.
By framing the change as one that requires legislation, the commission is signaling that the current regulatory framework, in its view, limits what the MPSC alone can do to ease the cost burden on Michigan households.