LANSING, Mich. (Michigan News Source) – Michigan’s ranking on energy affordability is flickering, according to a recent report from the American Legislative Exchange Council (ALEC).
Retail prices.
According to the report, Michigan ranks 38th in energy affordability, reflecting “higher-than-average retail prices.” Michigan, a net exporter of electricity, relies on a “mix of natural gas, nuclear, and coal, with smaller contributions from wind and solar.” In addition, the report revealed that Michigan:
- Maintains a Renewable Portfolio Standard (RPS) and net metering policies.
- Aims to have a 60% renewable goal by 2035 and a 100% clean goal by 2040.
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Those goals, along with compliance obligations, added to higher electricity prices for consumers and businesses.
Gas and diesel.
When it comes to gas and diesel prices, Michigan game in 36th with an average price of $3.09 for regular unleaded. For diesel, Michigan came in 30th with prices averaging around $3.61.
Utility rate hikes.
Those elevated electricity prices are something Michiganders are experiencing currently. Consumers Energy and DTE Energy, two major utilities in the state, have requested numerous rate hikes in the last year. Consumers Energy just said it plans to ask for another rate hike in June after receiving approval for a $276.6 million rate hike earlier this month. DTE is expected to follow.
Dan Scripps is the Chair of the Michigan Public Service Commission (MPSC), a three-member panel appointed by the governor which is responsible for approving rate hikes and keeping utilities in check. Scripps explained the MPSC’s position on The Steve Gruber Show on Tuesday.
“The frequency of the rate increases is getting a lot of attention and it should,” Scripps said. “Under Michigan law utilities are entitled to seek a rate increase every year and they do. At the same time, we have a responsibility at the commission to make sure that the dollars that the utilities are seeking are reasonable and prudent and should be paid for by customers.”
Scripps called it a “disciplined approach” and pushed back against Attorney General Nessel’s claims that recent rate hikes given to Consumers and DTE included “private jet travel for executive staff” and “executive incentive compensation tied to maximizing shareholding returns.” Scripps said, “[The MPSC] has rejected those. Those are not appropriate for customers to pay. That’s something shareholders should pay for not utility customers.”
Coal-fired plants.
In the meantime, Michigan is opening up some of its retired coal-powered plants, including the Palisades Nuclear Plant in Southwest Michigan. It shut down in 2022.
Michigan also has much to weigh when it comes to what its energy grid can support. Talk of building data centers in Michigan communities is a hot-button issue as well, and several communities have issued moratoriums on the building of those facilities until more research can be conducted.
