Michigan Energy Policy that Works for Ratepayers
Michiganders work hard. They work smart. They deserve energy policy that does the same.
That means smarter rate-setting procedures. Lower rates for businesses. Lower costs for families.
Michigan has the 12th most expense retail price of electricity in the Country, up from 23rd the last time lawmakers rewrote the state’s energy policy in 2008.
We are headed in the wrong direction! Lawmakers are considering upgrades to Michigan’s energy laws. They should put customers first.
Ratepayer Priorities
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A disastrous energy policy created in 2008 allows utilities in Michigan to set their costs based on the costs they project they’ll incur in a future year. The law created an ultra-costly regulatory incentive for utilities to overestimate costs to generate higher profits for investors all at the expense of everyday ratepayers.
A review of roughly two-dozen recent cases found Michigan utilities over-projecting their own needed revenue by more than $5.6 billion. Families, small businesses, and manufacturers are picking up the tab from rates based on projections instead of the actual costs incurred by the utilities.
We need to hold utilities accountable for reliability. Currently the utilities include projections of costs for maintenance and repairs that customers pay for and then the utility doesn’t spend the money.
Ratepayers deserve relief. It’s time to put everyday families over well-connected shareholders. It’s time Michigan set utility rates based on the actual cost incurred by the utilities – not speculative projected cost.
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State law allows utilities to charge higher rates when they generate renewable energy. It’s a law that forces ratepayers to foot the bill when utilities do what they should be doing anyway.
It’s time to fix the expensive state law that forces families and businesses to pay more for electricity when a utility invests in renewable energy generation.
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Michigan law allows utilities to over-charge ratepayers tens of millions of dollars each year when customers invest in energy efficient appliances, home improvements or otherwise reduce energy use.
Energy efficiency programs are important. They shouldn’t be slush funds for monopoly utilities.
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Michigan law makes it difficult for industrial ratepayers to invest in renewable energy for use at their own facilities. It’s time for state law to catch up with technology by expanding the definition of self-generation to allow for more renewable generation within at least 25 miles of an industrial site.
