Michigan Democrats Propose New Bills to Cap Utility Profits, Restrict Political Spending
Three Michigan Democrats introduced bills to cap utility profits at 8.2% and ban companies from using customer money for political activities and executive pay.
LANSING, MICHIGAN — Michigan House Democrats introduced three new pieces of legislation Wednesday to increase oversight of the state’s energy companies, as consumer frustrations grow over high rates and poor reliability from major utilities.
Representatives Natalie Price (D-Berkley), Erin Byrnes (D-Dearborn), and Betsy Coffia (D-Traverse City) presented the bills as part of their ongoing push for a Ratepayer Bill of Rights. The proposed legislation would cap regulated utilities’ return on equity at 8.2%, prohibit companies from using customer funds for executive compensation, political lobbying, and advertising, and mandate independent audits every five years to examine utility performance.
New Bills Target Utility Spending and Profits
The legislation is the latest effort by Democrats to address widespread consumer complaints about Michigan’s largest energy providers. DTE and Consumers Energy have faced scrutiny in recent years due to their annual requests to raise energy rates while customers experience ongoing reliability issues.
The three bills had not been assigned numbers as of Thursday morning but were designed to complement previously proposed ratepayer protections introduced in the fall of 2025. Those earlier proposals focused on ensuring customers receive fair compensation for lengthy power outages.
Consumer Advocates Support Increased Oversight
Environmental and consumer advocacy groups joined the Democratic lawmakers at Wednesday’s announcement to support the new legislative package. The advocates have consistently called for greater accountability from Michigan’s regulated utilities, citing data showing poor energy reliability performance.
The proposed return on equity cap of 8.2% would limit the profits utilities can earn on their investments, while the restrictions on ratepayer-funded political activities would prevent companies from using customer money to influence elections or lobby for favorable policies.
Independent Audits Required
Under the proposed legislation, Michigan’s regulated utilities would undergo mandatory independent performance audits every five years. These reviews would examine utility operations, reliability metrics, and customer service standards to provide greater transparency for ratepayers and regulators.
The audit requirement comes as customers continue to express frustration with service reliability, particularly during severe weather events that have left hundreds of thousands without power for extended periods.
The bills are part of a broader Democratic initiative to reform utility regulation in Michigan. Previous legislative efforts have focused on compensation for outages and improved emergency response procedures, while these new proposals target the financial and political activities of energy companies.
DTE and Consumers Energy regularly appear before the Michigan Public Service Commission to request rate increases, citing infrastructure investments and maintenance costs as justification for higher customer bills. The proposed legislation would add new restrictions on how utilities can spend ratepayer funds and limit their profit margins on regulated services.
