Michigan lawmakers want utilities to pay more for outages
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A downed tree in Detroit's Morningside neighborhood in 2024. Photo: Jim West/UCG/Universal Images Group via Getty Images
Michigan just raised the payout for long power outages, but some lawmakers want the state's utilities to pay customers even more.
Why it matters: At a time when energy costs are already straining household budgets, long outages can quickly get expensive — spoiling food, disrupting work and forcing families to find temporary alternatives.
The latest: Sen. Stephanie Chang (D-Detroit) renewed the push just days ago, telling Michigan Public the proposals are meant to give utilities a stronger financial incentive to restore power faster.
- "We have heard time and again from residents that losing power, losing food, it could be really devastating," she said.
State of play: Michigan's automatic outage credit is now $44 per day for customers who lose power long enough to qualify under state rules, up from $42.
- Compensation for an extended outage would be substantially larger under the proposed changes.
Zoom in: The Senate package, unveiled last month, would create hourly payments starting at $5 for the first hour and increase to $25 once an outage reaches 72 hours.
- It would also expand compensation for frequent outages and create reimbursements for some renters.
Follow the money: A qualifying 72-hour outage would generate $88 under current rules and about $1,057 under the proposed system, Axios calculates. The Michigan League of Conservation Voters, which supports the legislation, confirmed the math.
The other side: Consumers Energy is still reviewing the legislation. Spokesperson Katie Carey noted Michigan recently increased its outage credit and said reliability investments and restoring power "safely and quickly" remain top priorities.
Reality check: The Senate package has not advanced since it was introduced last month and remains in committee.
Zoom out: After a summer of major outages and rising energy costs, the proposed credits are part of a broader push to change how Michigan utilities are regulated.
- 💸 Affordability: The Michigan Public Service Commission, the state's regulatory body, is urging systemic changes to reduce the frequency of rate hikes.
- 🗳️ Political influence: Voters will weigh a November ballot measure targeting political spending by regulated utilities.
What's next: The Legislature still has session days remaining this year.
- MPSC will hold a Detroit energy-affordability workshop Nov. 17 at Durfee Innovation Society, where residents can weigh in on utility costs and help with utility bills.