Michigan lawmaker wants to block utility rate increases

New state legislation aims to slow how often utility companies can request rate increases as Michigan’s electricity costs climb faster than most of the country.

LANSING—Michigan families’ electricity bills are now more than twice as expensive as they were 20 years ago, one of the steepest increases in the country over that time. And this year, a Democratic state senator is trying to change the rules that helped make that possible.

State Sen. Kevin Hertel (D–St. Clair Shores) on Thursday introduced legislation that’s aimed at slowing the pace of utility rate hikes, essentially by forcing companies to lock in their electricity and gas prices for three years at a time instead of allowing increases on an annual basis.

“Increased costs, including high energy bills, are making it hard to get by,” Hertel said in a statement. “I know my colleagues on both sides of the aisle are hearing this from their constituents as well. I’m not afraid to take on this fight, and while other politicians point fingers and fail to solve this problem, I’m focused on finding solutions and taking action to lower costs.”

Frustration over rising energy costs has turned into a full-blown political issue in Michigan. 

A recent Detroit News analysis found that average electricity prices in the state have climbed from roughly 10 cents per kilowatt hour in 2006 to more than 20 cents this year—marking an increase of about 120%. Only three states saw larger percentage increases over that period.

One reason those electricity prices keep climbing, Hertel contends, is because of how often utilities are allowed to return to state regulators and request permission to raise their rates.

Under current Michigan law, utilities can apply for a new rate increase just 12 months after their last request. And that structure has led to what some critics have described as a “revolving door” of rate cases, with companies seeking new hikes as frequently as legally possible.

Hertel’s bill, Senate Bill 768, would extend the timeline between rate cases from one year to three. The policy, known as a multi-year rate plan, would give state regulators more time to examine utility spending while also offering households more predictability in their monthly bills.

“This policy takes a simple approach by locking in energy rates for years at a time to provide relief for Michiganders now and stability in the future,” Hertel said in a press release.

The proposal, which has been referred to a state Senate committee for further review, arrives amid broader uncertainty about Michigan’s energy future. Utility companies have promoted large new data centers as potential economic wins, arguing that adding massive industrial customers could help spread costs and ease pressure on residential rates. But some remain skeptical, warning that the increased power demand could saddle ratepayers with even higher costs.

Energy policy is also shaping up to be a key issue in the 2026 election cycle. Nearly every candidate running for governor this year told The Detroit News that electricity rates are too high. Secretary of State Jocelyn Benson, the Democratic frontrunner, has also called for a temporary moratorium on rate increases while the state reassesses its role in regulatory authority.

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