Independence Day weekend was a great celebration of our nation — 250 years of our republic and its successes. But for many Michiganians, what was supposed to be a weekend of relaxation turned into a darkened disaster.
Nearly 400,000 residents lost power during one of the most scorching heat waves we have seen in recent years. Electricity is an essential part of everyday life. Just one day without it can lead to spoiled food, ruined medications, flooded basements and almost unlivable homes for seniors and those with disabilities.
DTE Energy’s failure to respond in a timely and effective manner requires more direct state intervention. Our residents deserve reliable power, not excuses and extended outages that hit working families, seniors and small businesses the hardest. These outages can’t go unanswered. That’s why I’m calling on the Michigan Senate to immediately hold oversight hearings into DTE’s response, as well as the broader failures of our state’s utility regulation.
We need transparency into DTE’s storm preparation, tree-trimming efforts, grid-hardening investments, restoration timeline guidelines and how ratepayer dollars are actually being used. Michigan can’t continue accepting third-world service in exchange for first-world rates.
In addition to robust oversight hearings in the Senate, I urge DTE to voluntarily provide meaningful compensation to affected customers beyond the standard $42-per-day credits that kick in only after prolonged outages under catastrophic conditions. If DTE doesn’t step up, the Michigan Public Service Commission (MPSC) must require it. If neither occurs, I will pursue legislative action to ensure residents receive the relief they deserve, along with other real reforms that hold these careless conglomerates accountable.
Michigan’s system of regulating utility providers is in need of vast reform. In the current system, two major utility providers, DTE and Consumers Energy, are allowed by the state to be de facto super monopolies. They have no competition, not because none exists, but because the state of Michigan prevents it. These two utility companies are regulated through the MPSC, which is essentially a board of directors appointed by the governor.
If the utilities want a rate hike, they have to go through the MPSC. Interestingly, the MPSC seldom denies requests for rate increases. Since 2020, the MPSC has approved nearly $800 million of rate increases to Consumers Energy alone. Obviously, something about this system is broken and needs to change.
Throughout my career, I have introduced numerous bills outlining a framework for meaningful change. In early June, I introduced legislation that would require DTE and Consumers Energy to base their financial forecasts on tangible, real-world data, not abstract future estimates that leave room for inflated bookkeeping.
I recently introduced another bill that would require public utility companies to disclose their campaign spending and lobbying expenses, which, for some reason, are not publicly accessible.
These reforms are just a few that would vastly assist in restoring quality service, transparency and accountability for Michigan residents.
I will continue to fight for fairness and affordability when it comes to the public utilities in this state. It is the Legislature’s job to provide oversight and straightforward regulation that ensures the prosperity of Michigan residents.
It’s time we get smart.
State Sen. Jim Runestad, R-White Lake, represents Michigan’s 23rd Senate District.
This article originally appeared on The Detroit News: Michigan’s recurring power outages need state oversight | Runestad
Reporting by Jim Runestad, The Detroit News / The Detroit News
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By Jim Runestad, The Detroit News | USA TODAY Network
