Full Breakdown
Michigan Moves Toward Utility Affordability Goal Amid Rising Energy Insecurity
6/24/2026, 2:53:31 AM
New Affordability Target Adopted by Michigan Regulators
In early 2024 the Michigan Public Service Commission (MPSC) approved a goal that would cap combined gas and electric costs for low-income households at no more than 6 % of household income. The target is based on a DTE Energy pilot in which more than 2,000 customers paid <= 6 % of income on a single utility, or <= 10 % on electricity and gas combined. The commission has not set a rollout date; it expects to file an implementation plan by February. Eligibility criteria and funding mechanisms remain under design.
Background: Rising Energy Costs and Disconnections
Utility bills in Detroit have risen sharply. Retired residents Karen Johnson Moore and Columbus Moore reported a combined gas-electric bill of $500 in February, compared with typical monthly bills of $175–$200 in earlier years. Earlier in the year the MPSC approved a $242.4 million rate increase for DTE electric customers. DTE recorded more than 213,000 residential electric disconnections for non-payment in the previous year, even as residential electric costs rose more slowly than inflation. Nationally, the U.S. Energy Information Administration’s 2024 Residential Energy Consumption Survey found that 33 % of households experienced energy insecurity, up from 27 % in 2020.
Data & Statistics
- $500 monthly combined bill for the Moores (February).
- $1,700 debt accrued by Joi Deshotel by May.
- > 213,000 DTE residential electric shut-offs in 2023.
- Pilot program: > 2,000 participants, cost share <= 6 % of income on one utility, <= 10 % on electricity + gas combined.
- $242.4 million DTE electric rate hike approved.
- 33 % of U.S. households reported energy insecurity in 2024.
Affected Residents and Their Experiences
Karen Johnson Moore says, “When it gets 90 degrees … we have to keep it under 80 in order to be comfortable,” reflecting the strain of high summer cooling costs. Joi Deshotel, a single mother of two, repeatedly called for emergency assistance without success, eventually enrolling in DTE’s payment plan while carrying $1,700 in debt. Both households illustrate how rising utility costs threaten basic budgeting for low-income Detroit families.
Official Statements & Responses
MPSC spokesperson Matt Helms noted that tracking the share of income spent on energy is difficult because of limited household-income data and variable usage. He said the commission will file an implementation plan by February. DTE vice president of customer and community engagement Evette Hollins expressed support for affordability programs, stating that the “right funding mechanism is needed to ensure that we can expand that program to meet the need.” DTE reported that pilot participants experienced fewer disconnections and more consistent payments, describing the discount as “meaningful relief.”
Criticism & Opposition
State Rep. Tonya Myers Phillips (D-Detroit) criticized the reliance on temporary assistance, describing the payment plan as “so high it doesn’t even feel like a payment plan.” She highlighted over 200,000 utility shut-offs and called the situation “sad, avoidable, and overdue,” urging a systemic shift away from short-term fixes.
Verbatim Quotes
- “It’s sad, it’s avoidable, and it’s overdue.” — Tonya Myers Phillips, State Representative (D-Detroit)
- “When it gets 90 degrees … we have to keep it under 80 in order to be comfortable.” — Karen Johnson Moore, Detroit resident
- “Everything is already going up, increasing, increasing every day,” — Joi Deshotel, Detroit resident
- “We are strong supporters of programs like that,” — Evette Hollins, Vice President, Customer and Community Engagement, DTE
- “Data like this can be difficult to track because of lack of information about household income as well as variations in energy use among residential customers,” — Matt Helms, MPSC spokesperson
Conflicting Reports & Gaps
The MPSC acknowledged it cannot determine how many customers currently exceed the 6 % income threshold, citing gaps in income data and usage variation. No definitive timeline for program rollout has been announced.
What’s Next
The commission plans to release an implementation plan by February 2025. If the affordability program adopts eligibility similar to the expanded Michigan Energy Assistance Program—covering households earning up to 60 % of the state median income—residents like Deshotel could see monthly electric bills capped at $84. Ohio, New York, and Minnesota have pursued comparable caps or automatic enrollment mechanisms, offering potential models for Michigan’s next steps.
