Key facts
- Michigan regulators adopted a goal to limit combined gas and electric costs for low-income households to no more than 6% of their income.
- The state is still designing the program to implement this affordability goal.
- DTE conducted over 213,000 residential electric disconnections for nonpayment last year.
- A DTE pilot program indicated that capping utility costs at a percentage of income led to fewer disconnections and more consistent payments.
- The Michigan Public Service Commission (MPSC) expects to file an implementation plan for the affordability goal by February.
Michigan regulators have adopted a goal to limit combined gas and electric costs for low-income households to no more than 6% of their income, a move advocates say is overdue but may not help many struggling families soon enough. Residents like Karen and Columbus Moore, whose DTE Energy bill exceeded $500 in February, are finding it difficult to manage energy costs despite conservation efforts. Joi Deshotel has repeatedly tried to access assistance programs without success and faces significant debt to the utility.
State Representative Tonya Myers Phillips highlighted that Michigan's current system relies too heavily on temporary aid, leading to over 213,000 residential electric disconnections last year. A DTE pilot program, however, showed that capping utility costs at a percentage of income provided meaningful relief and led to fewer disconnections. The Michigan Public Service Commission (MPSC) is still designing the implementation plan for the new affordability goal, with an expected filing by February.
While the MPSC acknowledges data challenges in tracking energy costs relative to household income, national data indicates a rise in energy insecurity. DTE supports affordability programs but emphasizes the need for a proper funding mechanism. Several other states have implemented or are testing similar income-based utility cost caps. If Michigan's new program mirrors the expanded eligibility of the Michigan Energy Assistance Program (MEAP), some households like Deshotel's could see their bills capped, though others like the Moores may not qualify.