Warren households could see their electricity bills climb nearly 10 percent this year. The Michigan Public Service Commission is reviewing a $474 million rate increase request from DTE Energy. But the bigger fight is happening at the Capitol, where state leaders are accusing the utility of buying political influence to protect those hikes.

Attorney General Dana Nessel delivered her strongest criticism of Michigan's utilities on Tuesday, calling the relationship between utility money and state politics "the worst corruption imaginable."

"We're talking about whether or not people can have their heat on in the winter," Nessel said. "We're talking about whether or not people are able to have oxygen that is required for some people who have health issues."

Nessel spoke during a roundtable discussion ahead of the Detroit Regional Chamber's annual Mackinac Policy Conference. She argued that DTE Energy and Consumers Energy have built extensive operations designed to raise consumer rates and then defend those increases politically.

"They have employees whose entire job is figuring out how to increase rates on consumers," Nessel said.

How utility money flows through Lansing

According to Nessel, utilities spend heavily on consultants, attorneys, and lobbying efforts. The cost of those expenses is then passed through to ratepayers in rate case requests before the MPSC. Customers effectively foot the bill for the lawyers working to raise their rates.

The attorney general said utilities also use campaign contributions and dark money networks to influence both major parties. She recalled being approached by DTE representatives during the 2018 Mackinac conference circuit, who offered donations toward her campaign.

"They do this with both sides," Nessel said. "They don't discriminate by party. They want to make sure that they have everybody's ear. And the best way to do that is massive campaign contributions."

Even candidates who refuse direct donations face pressure from outside groups aligned with utility interests, Nessel said. Those groups can spend heavily to support or oppose candidates during elections.

A push to elect MPSC commissioners

State Rep. Jimmie Wilson Jr., representing the Ypsilanti area, introduced legislation in March that would make Michigan Public Service Commission members elected positions instead of appointed ones. Currently, commissioners are appointed by the governor and confirmed by the state Senate.

Wilson argued that the current structure leaves regulators too politically connected to Lansing power dynamics. Under his proposal, voters would choose the commissioners responsible for approving utility rates and overseeing companies like DTE Energy.

The MPSC currently consists of three commissioners:

  • Daniel C. Scripps, Chair, appointed by Gov. Gretchen Whitmer in 2019
  • Katherine L. Peretick, appointed by Whitmer in 2021
  • Shaquila Myers, appointed by Whitmer in 2025

All three serve staggered six-year terms. No more than two commissioners may represent the same political party.

What this means for Warren

Warren is in DTE Energy's service territory. The utility's latest rate case seeks an average residential rate increase of 9.7 percent and a 10.1 percent increase in street lighting rates, according to reporting from mLive.

Oakland County has become the only county to formally challenge DTE's rate increase request out of hundreds of municipalities in the utility's territory, according to mLive.

Warren residents do not have the option to choose a different electricity provider. Michigan's utility system operates as what advocates call a "controlled monopoly." Building competing power grids is considered unrealistic and expensive, so the state relies on the MPSC to regulate rates and protect consumers.

DTE's response

A spokesperson for DTE Energy pushed back against Nessel's allegations. The company said its political contributions come from a voluntary employee PAC or shareholders, not from customer revenue.

"DTE Energy is committed to being a responsible corporate citizen and complies with all applicable laws regarding corporate donations and political contributions," the spokesperson said.

The company also said it is required by law to fund outside organizations that intervene in rate case proceedings, including their attorneys and technical experts.

The debate over utility oversight is expected to intensify at the Mackinac Policy Conference, where business leaders, policymakers, and gubernatorial candidates are gathering this week. Detroit Regional Chamber President Sandy Baruah is expected to outline how Michigan is falling behind competing states in income, job growth, and educational attainment.

For Warren residents, the stakes are immediate. Their monthly electricity bills depend on decisions made by three appointed commissioners in Lansing. Rep. Wilson's bill would change that dynamic. Whether it gains traction remains to be seen.

Reporting by James Thornton for Michigan Capitol.