MPSC Releases 2025 Annual Report Highlighting Grid Improvements and Data Center Consumer Protections

Michigan Public Service Commission Reports Significant Progress on Energy Reliability and Consumer Protection

LANSING — The Michigan Public Service Commission (MPSC) released its 2025 Annual Report on March 3, 2026, marking significant improvements in electric reliability, affordability, and consumer protections during the last fiscal year.

The three-member commission highlighted what it calls "strong improvements in reliability, maintaining affordable energy and enacting strong consumer protections in response to data center development" among the key achievements of 2025.

Grid Reliability Shows Dramatic Improvement

Michigan's two largest electric utilities, DTE Electric Co. and Consumers Energy Co., demonstrated notable progress in grid reliability and resilience after decades of poor performance. According to the report, Michigan shaved off nearly an hour of outages per year when accounting for weather from 2019 to 2024 — 52.6 minutes annually per customer — more than any other state during that period.

When including storm events, the improvement was even more dramatic, with outage times dropping by 88.5 minutes, ranking sixth highest in the country during that period and best in the region.

Commission Chair Dan Scripps noted that amid increased utility investments in grid improvements, Michigan has been able to maintain strong focus on managing customer costs.

Energy Bills Remain Competitive

Michigan ranked 18th nationally for home energy bills in 2024, its best ranking in a decade. Looking specifically at electric bills, Michigan performed even better, ranking 15th in the nation.

The report shows Michigan's average home electric bill of $119.31 was nearly $23 lower than the national average of $142.16 in 2024. This is lower than average bills in neighboring states including Ohio ($135.16) and Indiana ($133.06), and lower than the $121.66 per month average for the Midwestern region that includes Michigan, Illinois, Indiana, Ohio and Wisconsin.

Against the backdrop of high inflationary pressures, Michigan has held utility increases in check in recent years. While the nation saw a cumulative 22.5% increase in inflation from 2020 to 2025, Michigan's residential energy costs during that period increased at a rate 5.3% below the rate of inflation.

Strongest Data Center Protections in the Nation

The MPSC enacted what the commission calls the nation's strongest protections for consumers to prevent other customers from subsidizing data center costs. The Commission approved special contracts sought by DTE Electric that add a range of additional protections as a condition of serving a proposed 1.4-gigawatt data center in Washtenaw County's Saline Township.

A critical condition requires that other customers will not pay any costs the utility is unable to recover from the data center. This follows controversial deals between DTE and Green Chile Ventures LLC, an Oracle subsidiary, for powering massive data center campuses in the state.

The Commission also approved Consumers Energy's application to amend the terms and conditions under which the utility serves data centers and other very large electric customers. Approved provisions protect other ratepayers from subsidizing data centers or facing other additional costs with the arrival of energy-intensive facilities.

The MPSC has rejected multiple attempts by Attorney General Dana Nessel to challenge the data center approvals through formal review procedures, with the commission maintaining its conditional approvals.

Energy Assistance Program Reaches Thousands

Among other major highlights, the MPSC awarded more than $54 million in grants through the Michigan Energy Assistance Program (MEAP), providing home energy assistance and self-sufficiency services to 56,018 income-eligible customers.

The program helps low-income Michiganders pay their heating and cooling bills during extreme weather conditions and provides financial counseling to prevent future energy burdens.

2026 Outlook

As 2026 begins, the MPSC faces ongoing challenges including managing the energy demands from data center development while maintaining affordable rates for residential customers. The commission has also been dealing with recent extreme winter weather that tested Michigan's natural gas system in January 2026, leading to unusually high demand and elevated natural gas prices.

The annual report also noted that while signs of improvement are evident, the commission remains committed to ensuring that Michigan's energy system continues to serve all ratepayers fairly as the state transitions to cleaner energy sources and accommodates growing energy demands from technology and commercial development.

Sources

• MPSC's focus in 2025: improving electric reliability, managing affordability and protecting consumers — https://www.michigan.gov/mpsc/commission/news-releases/2026/03/03/mpsc-releases-annual-report
• MPSC goes big on batteries, approving six energy storage contracts totaling 1,332 megawatts — https://www.michigan.gov/mpsc/commission/news-releases/2026/03/27/mpsc-goes-big-on-batteries
• Attorney General: Attorney General's Efforts to Review DTE Data Center Contracts Rejected Again At MPSC — https://www.michigan.gov/ag/news/press-releases/2026/03/27/ag-efforts-to-review-dte-data-center-contracts-rejected-again-at-mpsc