East Michigan News

LANSING, Mich. — State Sen. Jim Runestad has taken a stand against the rising utility costs in Michigan by introducing legislation aimed at curbing rate hikes through a new bill.

Runestad's bill focuses on ensuring that utility companies adhere to actual cost data, rather than future projections, when seeking approval for rate increases from the Michigan Public Service Commission (MPSC). The senator highlighted the current imbalance in the system, stating, “Under Michigan’s unfair system, the customer is always the loser — always paying more while these companies rake in profits.”

The proposed legislation comes in response to the approval of a $368 million rate increase for DTE Electric Co. customers by the MPSC in December 2023, contributing to Michigan's ranking as the 11th highest state in terms of residential electricity rates.

Runestad emphasized the need to shift away from the practice of allowing utility providers to base rate increases on projected costs, stating, “Utility companies have been allowed to propose rate increases on best guesses instead of actual data and it’s no surprise that this make-believe system has resulted in higher bills for customers.”

Senate Bill 812, introduced by Runestad, seeks to reinstate the requirement for utility companies to rely on actual costs rather than future projections when requesting rate increase approval from the MPSC, aiming to provide more transparency and accountability in the process.

In addition to this bill, Runestad has also introduced other measures to address electricity costs in Michigan, including establishing reporting requirements for utility providers' lobbying efforts and proposing that MPSC members be elected by statewide vote to enhance accountability.

The senator emphasized the importance of protecting consumers against utility monopolies, stating, “Accountability inspires accountability. Legislators must be willing to step up to help protect consumers against what are essentially the utility pseudo-monopolies of our state. Michigan residents deserve affordable and reliable energy.”

Through these legislative efforts, Sen. Jim Runestad aims to bring about necessary changes to ensure that Michigan residents have access to affordable and reliable energy, addressing the concerns surrounding escalating utility costs in the state.