Capitol News

State Senator Michele Hoitenga has introduced new legislation aimed at increasing 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, co-sponsored by Senators Ed McBroom, Kevin Daley, Lana Theis, Jonathan Lindsey and Roger Hauck, would require the Michigan Public Service Commission (MPSC) to notify both the Legislature and the public before approving proposed rate hikes for 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.”

The bill mandates that MPSC submit a detailed report outlining any proposed increase, its justification and its expected effect on consumers to relevant House and Senate committees. These committees would be required to hold public hearings within 30 days to review proposals, gather testimony from experts and stakeholders, and issue a nonbinding recommendation before 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.”

Additionally, SB 587 seeks to prevent major utilities from filing overlapping cases by requiring them to space out their requests for rate changes. This measure is intended to reduce strain on commission resources and minimize confusion among 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.”

The bill has been referred to the Senate Committee on Energy and Environment for further consideration.