New Ratepayer Bill of Rights legislation would cap monopoly utility profits, protect ratepayer dollars

House Dems introduce legislation to rein in out of control utility greed, improve reliability, increase accountability over ratepayer dollars

LANSING, MI — As Michigan families and small businesses continue to face some of the highest energy bills in the Midwest, state lawmakers introduced legislation today aimed at increasing utility accountability, reining in excessive utility profits from rate hikes, and ensuring more ratepayer dollars are spent on improving service rather than private jet travel, lobbying and advertising.

The legislation would expand on Michigan’s first-ever Ratepayer Bill of Rights by placing new limits on the guaranteed profits monopoly utilities like DTE and Consumers Energy can collect through rate hikes and prevent utilities from charging customers for expenses unrelated to providing reliable electric service, including lobbying, public relations, and private jet travel. The legislation would also require independent distribution system audits every five years to help identify opportunities to improve reliability and reduce costs.

“For too long, utilities have secured excessive guaranteed profits in rate hikes before the Michigan Public Service Commission that pads the pockets of shareholders and CEOs and does nothing to actually improve service,” said Rep. Natalie Price. “My bill would cap utility companies’ profits and make sure more of ratepayers’ hard-earned money actually goes toward grid improvements and reliability rather than shareholder profits.” 

If enacted, the legislation could save Michigan households an estimated $267 between 2027 and 2030 alone, while delivering tens of millions of dollars in broader savings statewide.

“The data is clear: Michigan utilities have consistently tried to pass costs onto ratepayers that have nothing to do with delivering reliable energy, from lobbying expenses to executive perks such as private planes and entertainment,” said Rep. Erin Byrnes. “This legislation closes those loopholes and gives Michigan families and small businesses the transparency and protections they have long deserved.” 

The legislation comes as Michigan residents continue to face some of the highest energy costs in the Midwest and increasingly question why rates continue to rise while utility companies report record profits.

“For years, Michigan has ranked near the bottom in the country for energy reliability,” said Rep. Betsy Coffia. “My legislation would ensure utility companies have a third-party engineering audit of their electric grid every 5 years to ensure regulators, lawmakers and the public have ongoing visibility into grid performance and infrastructure investment. It’s time to fix Michigan’s reliability problems once and for all.” 

The legislation builds on a broader package of ratepayer-focused reforms being advanced in Lansing, including measures to compensate customers for extended outages, strengthen protections against utility shutoffs, expand access to community solar, and increase transparency around utility influence in state government.

“Young Michiganders are fed up with skyrocketing energy costs and are looking to our elected leaders to do something about it,” said Michael King, West Michigan Regional Organizer for the Michigan League of Conservation Voters. “That’s why I’m proud to stand with state lawmakers today who are introducing bills that would cap utility company profits, stop them from charging us for their private jets and public relations campaigns and audit them to ensure their investments go toward improving grid reliability.”

“States that have put real guardrails on utility profits have delivered meaningful savings for residents. Michigan has made important progress toward building a more reliable energy system, but families are still struggling with high energy bills,” said Courtney Brady, State Advocacy and Midwest Regional Director for Evergreen Action. “These proposals would help ensure affordability remains at the center of our energy policy. This is the kind of policy that makes a tangible difference in people’s lives, and the urgency could not be clearer.”

###