MPSC’s focus in 2025: improving electric reliability, managing affordability and protecting consumers

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Signs of significant improvement in electric reliability, maintaining affordable energy and enacting strong consumer protections in response to data center development are among the highlights of the MPSC's 2025 Annual Report.

The report notes that Michigan's two largest electric utilities, DTE Electric Co. and Consumers Energy Co., continued to show signs of significant improvements in reliability and grid resilience after decades of poor performance. Michigan from 2019 to 2024 shaved off nearly an hour of outages per year when accounting for weather, 52.6 minutes annually per customer, more than any other state during that period. When including storm events, the improvement was even more dramatic, with outage times dropping by 88.5 minutes, the sixth highest improvement in the country during that period and best in the region.

Amid increased utility investments in grid improvements, the MPSC maintained its strong focus on managing customer costs. Michigan ranked 18^th nationally for home energy bills in 2024, its best ranking in a decade. Home energy bills include both electric and natural gas. Looking just at electric bills, Michigan performed even better, ranking 15^th in the nation. Data from the U.S. Energy Information Administration (EIA) show that Michigan's average home electric bill of $119.31 was nearly $23 lower than the national average of $142.16 in 2024, lower than average bills in two neighboring states: Ohio ($135.16) and Indiana ($133.06), and lower than the than the $121.66 per month average for the region that includes Michigan, Illinois, Indiana, Ohio and Wisconsin.

Against the backdrop of high inflationary pressures, Michigan has held utility increases in check in recent years. While the nation saw a cumulative 22.5% increase in inflation from 2020 to 2025, Michigan's residential energy costs during that period increased at a rate 5.3% below the rate of inflation.

Meanwhile, the MPSC enacted the nation's strongest protections for consumers to prevent other customers from subsidizing data center costs. The Commission approved special contracts sought by DTE Electric that add a range of additional protections as a condition of serving a proposed 1.4-gigawatt data center in Washtenaw County's Saline Township and added a further condition that other customers will not pay any costs the utility is unable to recover from the data center.

The Commission also approved Consumers Energy's application to amend the terms and conditions under which the utility serves data centers and other very large electric customers. Approved provisions protect other ratepayers from subsidizing data centers or facing other additional costs with the arrival of the energy-intensive facilities.

Among other major highlights of the MPSC's annual report:

• The MPSC awarded more than $54 million in grants through the Michigan Energy Assistance Program (MEAP), providing home energy assistance and self-sufficiency services to 56,018 income-eligible customers. Legislation signed by Gov. Gretchen Whitmer in 2024 raised the income eligibility threshold for Michigan households to be eligible to receive MEAP support and the amount that may be raised each year for it. MEAP ultimately could provide energy assistance to as many as 150,000 households per year, up from an average of around 50,000 households per year in recent years. In preparation for the 2026 program year, the Commission adopted a funding factor of $1.25 per meter per month for September 2025 to August 2026. The increased surcharge is expected to generate approximately $75 million.

• Michigan's energy waste reduction efforts, among the most cost-effective in the nation, generated lifetime savings of $1.4 billion for customers. Every $1 utilities spent on EWR programs - offerings help with upgraded lighting, heating, ventilation and cooling, home weatherization, energy education, appliance recycling and more - generated $2.40 of benefits, lowering customer bills through reduced energy use. Michigan's EWR program for natural gas was ranked first in the country and its electric EWR programs came in second.
• By the end of 2025, the amount of renewable energy generation in Michigan grew to 8,300 megawatts, a more than 40% increase from 2023.
• The Commission approved the first interstate electric transmission lines in 50 years. The Commission authorized Michigan Electric Transmission Co. (METC) to build two transmission lines - the Nelson Road to Oneida project, a 39-mile, 345 kilovolt (kV) double circuit line between substations in Gratiot and Eaton counties, and the Helix to Hiple project, a 55-mile, 345 kV double circuit line between substations in Calhoun and Branch counties.
• Customers who endure lengthy or frequent electric outages now automatically receive a bill credit that the Commission increased to $42 per day on Oct. 1, 2025. This is an annual increase meant to incentivize utilities to improve reliability and shorten the duration of outages, with credits increasing by $17 - or 68% - over the credits customers received prior to the Commission updating its Service Quality Rules in 2023. Importantly, these penalties for poor performance are paid directly to customers impacted by the loss of service.

The annual report, which must be filed the first Monday of March each year, also recaps accomplishments in many other important areas of the MPSC's work.

Customer assistance

The MPSC assisted 12,958 customers who contacted the agency's call center for help with complaints or other energy and telecommunications issues. The most common customer concerns included rates and surcharges, inaccurate billing, high bills, storm-related outages, damages and cancellation of contracts. MPSC Staff received 13 formal complaints related to energy in 2025, three of which met the required criteria for adjudication. One formal complaint related to video/cable television was filed in 2025, but that complaint didn't meet requirements for adjudication.

Energy rates

The Commission issued orders in four rate cases in 2025. Among electric utilities, there were rate cases for DTE Electric (Case No. U-21534) and Consumers Energy (Case No. U-21585). Among natural gas utilities, there were rate cases for Consumers Energy (Case No. U-21806) and Northern States Power Co. (Case No. U-21903).

The utilities requested a total of more than $1 billion in additional revenues. After reviewing each rate case in detail, including examination of all line items sought by the companies, the Commission approved just over $530 million of the requests, finding the costs were reasonable and prudent investments that will benefit customers, while disallowing other proposed costs that did not meet that standard.

Community engagement

The Commission sought to expand public engagement with regulatory matters at the MPSC, holding 18 regular commission meetings both in person, by online livestream or by phone, allowing more people to participate. An average of 290 people attended regular Commission meetings in 2025.

The Commission held public hearings around the state on a variety of topics, including Gaylord in May on the response to the catastrophic northern Michigan ice storm, Detroit in May on broadening public participation in matters before the Commission, Grand Rapids in September and Auburn Hills in October on utility long-range integrated resource planning parameters. The Commission also held a virtual public hearing on DTE Electric's application for data center special contracts in Case No. U-21990. More than 1,500 people attended that hearing.

MPSC outreach Staff attended 32 community events to share information resources with event attendees, answer questions, build relationships and take utility complaints.

Pipeline safety

MPSC Staff conducted 1,212 inspection days on natural gas pipeline safety inspections. Staff also conducted 86 days of inspection activity at the direction of the federal Pipeline and Hazardous Materials Safety Administration of interstate pipeline operators. The MPSC authorized and monitored the replacement of more than 350 miles of gas distribution pipelines and the moveout of about 12,000 gas meters from inside homes. In addition, Staff identified 74 violations of state gas safety standards and levied $210,000 in civil penalties. Staff also investigated 11 natural gas incidents.

Telecommunications and broadband

The MPSC's Telecommunications Division worked to ensure Michiganders are aware of the federal and state Lifeline programs, which provide discounts for phone and internet service. The Universal Service Administrative Company reports that 305,242 Michigan customers were served through Lifeline with broadband, voice or bundled services in 2025, placing Michigan among the top 5 states nationally for both the number of participants and the percentage of households participating in the program.

The annual report is available on the MPSC's website.

The MPSC serves as an expert, impartial regulator committed to consumer protection, fairness and transparency. For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the MPSC on Facebook, X/Twitter, LinkedIn or Instagram.

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