This op-ed is written by Rep. Phil Green (R-Millington) and Lora Current. Representative Green is the Michigan State Representative for District 67 and the Public Sector Chair of the American Legislative Exchange Council’s (ALEC) Energy, Environment, and Agriculture Task Force. Lora Current is the Senior Manager of the ALEC Energy, Environment, and Agriculture Task Force. ALEC is a Michigan News Source media partner.
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Recently the Michigan House approved a plan to lower energy prices across the Great Lakes State. As Michigan residents face rising utility costs and the state competes for major investments in manufacturing and data infrastructure, this plan to make energy more affordable and reliable has never been more important.
Energy affordability is not an abstract concept. It shows up in monthly utility bills, at the gas pump, and in the cost of doing business. At the same time, the energy landscape is becoming more complex. Rapid growth in electricity demand driven by data centers, artificial intelligence, and the reshoring of advanced manufacturing is placing new strain on the grid. States must not only maintain affordability but also ensure they have the capacity to meet future demand without sacrificing reliability.
The connection between misguided public policy and rising energy prices is borne out in the data. The American Legislative Exchange Council (ALEC) just released an updated edition of its annual Energy Affordability Report, which provides a clear, data-driven look at how states are performing and what policy choices are driving those outcomes. Michigan ranked 38th out of the 50 states in electricity affordability.
States that get energy policy right position themselves for long-term growth. They do not risk falling behind. The report evaluated electricity affordability across all 50 states using the most recent full year of data from the U.S. Energy Information Administration. Utility bills for Michigan residents are almost double compared to states like Louisiana, Iowa, Oklahoma, and Texas.
Energy policy choices matter. Mandates that require utilities to procure energy from intermittent sources, namely wind and solar, can increase system costs by necessitating backup generation and additional transmission infrastructure. In Michigan, for example, utilities are making significant investments in new transmission lines and grid upgrades as the state pursues increasingly aggressive renewable energy targets.
Those infrastructure and compliance costs are ultimately reflected in higher electricity rates for households and businesses. Similarly, policies that restrict or prematurely retire reliable, dispatchable energy sources, such as natural gas, can tighten supply and drive prices higher. These approaches often shift costs onto consumers and businesses.
The plan approved by the Michigan House would tackle this problem by repealing the requirement that all of Michigan’s energy come from renewable energy sources by 2040. The House-approved plan would reinforce the grid and reduce expenses by focusing on reliable, established energy sources.
States with lower electricity prices tend to share common policy characteristics: diverse energy portfolios, access to dispatchable generation, and regulatory frameworks that prioritize reliability and cost-effectiveness. States like Texas, Oklahoma, and Louisiana have benefited from abundant natural gas resources, strong transmission infrastructure, and policies that preserve reliable baseload generation while allowing markets to respond flexibly to demand growth. These advantages help keep electricity costs lower for manufacturers, data centers, and households alike, strengthening overall economic competitiveness.
For state legislators and energy industry leaders, the takeaway is straightforward. Affordability and reliability must remain at the center of decision-making. This includes maintaining a strong energy mix, streamlining permitting processes, and avoiding policies that unnecessarily increase costs.
Affordable energy is more than a policy goal; it is a competitive advantage. As states navigate a rapidly changing energy landscape, those that prioritize cost, reliability, and flexibility will be best positioned to attract investment, support job creation, and improve quality of life for their residents. The challenge now is for elected officials, from Lansing to Washington, DC, to act on it.