This summer, Michigan Governor Gretchen Whitmer asked the Michigan Public Service Commission to suggest ways to reduce people's utility bills.
In a recent letter, the agency, which regulates the state's utilities, made a number of recommendations, but said one in particular rose to the top of its list.
The Michigan Public Service Commission said currently, utilities have an incentive to invest in costly projects like new power plants, because that's where they make the most money. But other investments, it said, such as accelerated tree-trimming and maintenance activities, could both save money for customers and improve reliability.
"The current regulatory structure incentivizes new capital investment over using existing assets more effectively and efficiently," the commission's letter to Whitmer read. "It should therefore come as no surprise then when utilities choose to build new assets to solve a need, even if other
options are less costly to customers. However, where opportunities exist to use existing assets more effectively or efficiently, ratepayers benefit."
The agency recommends that the state Legislature pass a new law that requires and incentivizes utilities to take full advantage of their existing infrastructure, so customers don't have to pay for a costlier approach like a new natural gas plant.
Consumers Energy said it shares the Michigan Public Service Commission’s goals of improving affordability and reliability for customers, but expressed caution about some of the recommendations.
"We are investing critical resources in lowering energy costs while balancing the need for continued infrastructure upgrades to secure the electric grid and provide reliable energy supply," a spokesman said in a statement.
"Some of these recommendations, however, could unintentionally undermine those efforts. We will continue to work with the Commission and other stakeholders to ensure Michigan’s regulatory construct remains positive and that we continue to make progress on improvements to affordability and reliability in a way that works for all our customers," Consumers said.
DTE Energy, in its statement, said it shares the commission's objectives of improving reliability and keeping bills low.
"We will continue working with them on solutions that benefit all customers. Our customers' bills remain below regional and national averages, and the grid is getting more resilient — with outage times improving 90% from 2023 to 2025. We've made real progress, but we know there's more work to do in building a stronger grid for our customers."
Editor's note: Consumers Energy is among Michigan Public's corporate sponsors.
