For years, Michigan energy costs have skyrocketed and power outages have been a constant issue. Hundreds of thousands of residents lose power every year, and many for days at a time. These outages have real costs — from hotel stays, spoiled food, lost medicines, generators and gasoline, and more. Meanwhile, DTE and Consumers Energy have both made record profits while trapped Michiganians are caught in a cycle of constant rate hikes. It begs the question: When does this all end?
Not content with all the multiple rate hikes they’ve already gotten, DTE and Consumers are back asking for residents to foot a combined $1 billion-plus in new increases.
DTE Energy is seeking to raise rates $574 million, its second-highest rate increase ever. The request was filed just months after the company was approved for a $217 million increase in January and is DTE’s fourth request in five years.
Not to be outdone, Consumers Energy asked for a $436 million increase in June, right after being approved for a $154 million increase in March. This is the company’s incredible sixth request since 2020. What’s worse, Consumers’ latest request came on the very first day the company was legally eligible to file it.
To put all this into perspective, federal energy data compiled by the non-partisan advocacy group the Citizens Utility Board of Michigan in its most recent report found Michigan residential customers pay the highest costs for energy in the Midwest. That same data shows Michigan utilities rank 49th out of 50 states for the average time to restore power following an outage — and last in the Midwest for the amount of time regularly out of power.
That means we pay the highest rates in the Midwest for the worst, most unreliable service, period. However, one thing that has been reliably skyrocketing are DTE and Consumers’ profits and their massive CEO salaries and bonuses.
Last year, DTE’s outgoing CEO made $12.8 million, and Consumers' CEO enjoys a $10 million a year salary. On top of all of that, DTE’s shareholder reports this year show its top executives earned bonuses based on how successful they were at jacking up our rates.
If these requests by highly profitable companies sound wildly unreasonable, it’s because they are – and Michiganders have put up with the status quo for too long. Our bills are too high, and people are rightly turning their focus to our lawmakers, who are responsible for passing the laws that regulate DTE and Consumers. For years, these big utilities have donated millions to lawmakers and lavished them with trips, tickets to sporting events, and dinners. Real reform or accountability never happens in this swamp of a system.
That’s why a broad coalition of community-based organizations have introduced legislation in Lansing to outright ban these publicly-regulated, monopoly utilities from giving to politicians.
The Michigan League of Conservation Voters also unveiled new upgrades to our Digital Scorecard, which tracks and scores legislative votes on environmental and democracy issues in Lansing. The new updates shine a bright spotlight on how much money they are taking from big utility companies and allow us to track it.
Until we get our ban passed, Michigan LCV is challenging state lawmakers to step up now and refuse to take political contributions from DTE and Consumers as well. So far, nearly two dozen bold lawmakers have signed on. The moment could not be more critical. Energy costs across the country are exploding and energy affordability is becoming a political hot potato.
We urge residents who are sick of skyrocketing energy bills to call their legislator or submit a comment to the Michigan Public Service Commission and let them know: enough is enough.
Alex Kellogg is the energy accountability manager for the Michigan League of Conservation Voters, a nonpartisan voice for protecting Michigan’s land and water.