LANSING, Mich. — State Sen. Michele Hoitenga this week announced new legislation to increase transparency and legislative oversight in the process of utility rate increases across Michigan.
“Michigan families and small businesses are tired of seeing their bills rise without any clear explanation from utilities or regulators,” said Hoitenga, R-Manton. “If a company wants to raise rates, they should have to justify every penny in public, not behind closed doors.”
Senate Bill 587, introduced by Hoitenga and co-sponsored by Sens. Ed McBroom, Kevin Daley, Lana Theis, Jonathan Lindsey and Roger Hauck, would require the Michigan Public Service Commission (MPSC) to notify the Legislature and the public before approving any proposed rate hikes by electric, gas or steam utilities.
“Few things have a more direct and meaningful impact on the lives of all Michigan families than the cost of energy,” said Lindsey, R-Coldwater. “Bringing much-needed legislative oversight to the process will give the people a real voice concerning costs and help rein in out-of-control rate increases for energy needed to heat our homes and fuel our economy.”
Under the bill, the MPSC would be required to submit a detailed report to the House and Senate committees with jurisdiction over energy policy, outlining the proposed increase, its justification and its anticipated impact on consumers. Those committees would then be required to hold public hearings within 30 days to review the proposal, take testimony from experts and stakeholders, and issue a nonbinding recommendation to the commission before any final action is taken.
“People deserve a seat at the table when decisions are made that affect their monthly energy bills,” Hoitenga said. “This legislation puts ratepayers first and demands accountability from both the utilities and the state agencies charged with regulating them.”
The bill also ensures major utilities space out rate filings to prevent overlapping cases that strain commission resources and create confusion for consumers.
“Accountability and transparency should never be optional when it comes to people’s household budgets,” Hoitenga said. “This is a straightforward, commonsense reform to make sure the process serves the public — not just the utility companies.”
SB 587 has been referred to the Senate Committee on Energy and Environment for consideration.
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