Contact: Emily Halvorson
As Michigan families face rising electricity bills, a new independent analysis from Synapse Energy Economics finds that state leaders can take immediate action that could save the average Michigan household nearly $800 on electricity between 2027 and 2030. The report arrives on the heels of a recent DTE rate hike—with another request to raise prices even further anticipated soon—and underscores that while Michigan’s landmark 2023 clean energy package is already helping slow cost increases, additional near-term action is essential to stop bills from climbing even higher.
Read the full report here.
The report identifies three concrete steps Michigan leaders can take to turn the tide on rising energy costs:
- Requiring data centers to pay their full share and bring their own required power.
- Right-sizing utility profit margins by lowering monopoly utilities’ guaranteed return on investment.
- Unleashing customer-owned clean power solutions like rooftop solar, battery storage, and demand response.
According to Synapse’s findings, together these actions would save DTE customers an estimated $200 per year by 2030 and $790 in total savings between 2027 and 2030. Households that directly participate in customer-owned clean energy programs would save even more.
“Michigan is facing an energy affordability crisis, forcing families to make difficult financial decisions every single day. Whether they’re skimping on groceries, or skipping a doctor’s appointment, over a million households struggle because of the indefensibly high cost of energy in this state,” said Michigan Attorney General Dana Nessel. “Despite my Department’s best efforts to alleviate the bleed, year after year, Michigan’s utility companies ask for, and receive multi-million-dollar rate increases, further exacerbating this crisis. There is more we can and must do as a state to put our ratepayers’ needs above corporate profits, and every day we spend prevaricating is another day Michigan residents are forced to pay, literally, for our state’s inaction.”
“I can’t overstate how real this problem is—I am hearing it all the time from my constituents. Our bills are too damn high. People can not afford it,” said State Representative Donavan McKinney. “Somehow folks are using less electricity, but are paying more in their energy bills each month to DTE & Consumers Energy. I’m proud of the bills I’ve sponsored, taking these issues head-on, but there’s no question there’s more to do. No more excuses — the people we serve deserve better.”
“Rising energy costs aren’t inevitable. They’re the direct result of policy decisions, and Michigan is already proving that there’s a more affordable path forward,” said Courtney Brady, Evergreen Action Midwest Advocacy Director. “Thanks to 2023’s clean energy laws, the state is beginning to unlock cheaper, more reliable energy options that can lower costs for families. But too many Michigan households are still shouldering the burden of some of the highest utility profit rates in the country. By ensuring data centers fully pay for the electricity they require, reining in utility profits, and speeding up the deployment of cheap clean energy, Michigan leaders can build on this progress, lowering bills for households and building a more affordable energy future for everyone.”
“Michigan families are tired of seeing their energy bills go up while utility profits stay high,” said Derrell Slaughter, Michigan Policy Director for Climate & Energy at NRDC (Natural Resources Defense Council). “This analysis shows that we don’t have to choose between clean energy and affordable bills. By making big corporations pay their fair share and letting residents use tools like rooftop solar, our state leaders can put hundreds of dollars back into the pockets of Michigan households. It’s time to prioritize people over utility profits and build a cleaner, more affordable energy system for everyone.”
As Michigan navigates a rapidly changing energy landscape, the state has a real opportunity to deliver tangible financial relief to families while building a cleaner, more reliable grid. The progress made under the 2023 clean energy laws is already holding costs down, but that momentum could be wiped out by avoidable rate increases if state leaders fail to act. The policies outlined in this analysis give the MPSC and state legislators a practical, near-term roadmap to lower household costs, hold profit-hungry utilities accountable, and build a cleaner energy system that works for Michigan families for years to come.
A fact sheet detailing these interventions and their benefits can be found here.