Michigan state lawmakers are introducing legislation that would fundamentally change how utilities request rate increases, potentially locking in utility rates for three years at a time.

Senate Bill 768, sponsored by state Sen. Kevin Hertel of Clinton Township, would prohibit large for-profit utilities from seeking rate increases annually. Under current Michigan law, utilities can request rate hikes every 12 months after filing a rate case with the Michigan Public Service Commission.

Hertel introduced the bill after hearing from Michigan residents struggling with rising utility costs.

"What we've seen in recent history is that a rate increase is approved, and within weeks you see the next one," Hertel said during the Thursday Senate Energy and Environment Committee hearing. "So, we want to address that scenario and make sure we're getting off this constant roller coaster of rate increases that families across all of our communities are feeling."

Residents report utility bills climbing dramatically

Sapphire Carian told reporters her monthly utility bills jumped from 150 dollars to 250 dollars. She noted that another Michigan resident told her utility costs reached 1,200 dollars per month.

Lansing resident Meechee Morris said utility prices keep going up. He wants transparency from utility companies and wants to prepare for price increases.

"The three-year period, would give us the time to adjust to inflation," Morris said. "People don't have a problem with paying their bills if it goes up. We just like to know disclosure ahead of time, so we can prepare for those things."

Current system allows automatic approval if regulators don't act

Under the current system, Michigan Public Service Commission regulators have 10 months to evaluate a utility rate proposal. If regulators don't determine the rate case within that period, the requested rate increase automatically gets approved.

Hertel argues this timeline doesnt give Michigan residents enough time to weigh in on the process.

"We're cramming everything into 10 months," Hertel said. "It doesn't allow for the proper planning. I don't think it gives the people of our state a true voice in the process. Its not transparent."

DTE Energy opposes the bill

The state's largest utility companies did not testify at the Thursday committee hearing. DTE Energy sent a written statement opposing the legislation.

DTE spokesperson Ryan Lowry said the company recognizes affordability is a major concern for customers.

"While DTE Energy's electric bills have remained below regional and national averages, we are mindful of the impact any increase can have on our customers and continue to look for ways to manage costs responsibly," Lowry read in the statement.

DTE Energy added that over the past five years, the company has worked hard to make the grid stronger and smarter. The company noted 2025 was the most reliable year for customers in nearly two decades, with an 88 percent reduction in time spent without power since 2023.

Consumers Energy opposes the bill as introduced

Katie Carey, director of media relations for Consumers Energy, sent a statement opposing the legislation as introduced but said the utility is open to enabling multi-year rate case proceedings.

"Unfortunately, the bill as introduced may have a longer-term risk to customer affordability and reliability," Carey said. "Annual rate cases enable Consumers Energy to make timely, consistent investments in electric and natural gas systems that improve reliability."

Carey noted that more than 75 percent of the funding requested in Consumers Energy rate cases goes directly into grid improvements. The utility stated that Consumers Energy bills remain 12 percent below the national average.

More than 1 billion dollars in rate increases approved over five years

State Sen. Kevin Hertel of Clinton Township told the committee that the Michigan Public Service Commission has approved more than 1 billion dollars in electricity rate increases for the state's largest utility companies over the last five years.

Hertel plans to work closely with all partners to create legislation that can pass both chambers of the Michigan Legislature. The bill remains in the early stages of committee hearings.

Regulators suggest additional reforms

Michigan Public Service Commission Chair Dan Scripps told committee members that limiting the frequency of rate hikes is only one step lawmakers could take to improve the system.

Scripps suggested adding performance-based mechanisms to multi-year rate plans to realize shared savings.

"The details are important," Scripps said. "If you add in performance-based mechanisms, I think, realize some shared savings."

Scripps said higher energy costs come down to a combination of factors. Inflation specifically affects the energy industry worse than other sectors. General cost increases and federal policies like tariffs also play a role. Scripps estimated Michigan is still catching up from years of disinvestment in the early to mid 2000s.

Hertel told reporters he'd like to see additional concerns addressed during the rate-hike legislation process.

The bill would extend legally mandated time between rate requests

Hertel's bill would extend the legally-mandated time between rate request filings from 12 months to three years. He argues this would offer ratepayers greater certainty about household energy costs.

The approach, employed in some other states, is designed to shift utilities profit motive in a way that benefits ratepayers. Proponents say multi-year plans can help utilities profit by controlling costs rather than continually seeking new investments that require immediate ratepayer-funded returns.

The legislation could see changes or partner bills introduced before getting a final vote in the Michigan Senate. The bill needs Republican support to advance given the current partisan divisions in the Legislature.

Hertel's proposal represents one of a range of recent utility reform proposals to emerge in Lansing as Michigan grapples with rising energy costs. Other lawmakers from both sides of the aisle have blamed inflated utility profit margins, state renewable energy mandates, or utilities influence in state politics for the added burden on Michigan ratepayers.

Sources

  • https://www.mlive.com/news/2026/04/michigan-lawmakers-want-to-stop-utilities-from-raising-rates-every-year.html
  • https://www.wnem.com/2026/04/16/michigan-lawmakers-consider-legislation-limit-utility-rate-increases/
  • https://www.michiganpublic.org/politics-government/2026-04-17/utility-rate-hike-bill-goes-before-senate-committee
  • https://radio.wcmu.org/local-regional-news/2026-04-17/utility-rate-hike-bill-goes-before-senate-committee