Michigan State Regulators Approve Win for Michigan Families: New Agreements Between Utilities and Advocates Will Lower Energy Bills and Invest in Home Improvements

The Michigan Public Service Commission (MPSC) has recently approved two major agreements negotiated between environmental advocates, MPSC staff, the Attorney General’s office, and utilities that will help Michiganders reduce energy consumption and save money. These deals with Consumers Energy and DTE Energy expand the utilities’ energy efficiency initiatives, referred to as “energy waste reduction,” Ecology Center and NRDC, represented by Troposphere Legal, and Sierra Club and Urban Core Collective, represented by Earthjustice, were among those who joined the agreements after successfully pushing the companies to improve upon their initial energy waste reduction plans. These programs conduct insulation and air sealing improvements, offer rebates for highly efficient heating and cooling systems, and walk businesses through how best to lower their energy usage.

The new four-year plans for 2026-2029 include what MPSC Chair Dan Scripps called a “tremendous amount of really positive details” that will specifically help people struggling with high energy costs.

Many Michiganders live in older, drafty homes that require a lot of energy to heat in the winter and cool in the summer. This leads to a high “energy burden,” where families have to spend a disproportionate chunk of their paycheck just to keep the power on. These agreements help by:

• Increasing Support for Low-Income Families: More money will go toward fixing houses and apartments for neighbors who need it most.
• Neighborhood Initiatives: The deals help ensure that the companies target the highest-need neighborhoods in Detroit, Flint, and other communities with increased resources for home weatherization and more energy efficient products that reduce use of unhealthy gas appliances, along with community-based outreach to educate customers about available programs.
• Fixing Homes First: The plans include money for “health and safety” repairs. This pays for things like fixing a leaky roof or old wiring so that energy-saving upgrades, like new insulation, can be installed.
• Cleaner Technology: The deals encourage the use of heat pumps, which are a cleaner and more efficient way to heat and cool homes.
• Workforce Development: Increased support for workforce development programs will provide more opportunities to displaced trades professionals, people in low-income and environmental justice communities, formerly incarcerated people returning home, and tribal communities.

The MPSC noted that the Consumers Energy (Case No. U-21680) and the DTE Energy (Case No. U-21681) settlements set a new bar for how utilities should serve their customers. Instead of just building more costly power plants, these programs focus on helping people and companies use less power in the first place.

Statements

“These programs are designed to reach the households who struggle to pay their monthly electricity bills and otherwise might not be able to benefit from utility programs,” said Chinyere Osuala, Senior Attorney for Clean Energy at Earthjustice. “They include one-of-a-kind targeted neighborhood initiatives, programs designed to ensure health and safety in the home, and deeper energy efficiency installations, and hold DTE and Consumers accountable to not only reducing climate impacts, but also to easing energy burdens in vulnerable communities.”

“Over the last several years, we have seen how significant investments in home repairs and energy efficiency can improve quality of life for vulnerable communities,” said Alexis Blizman, policy director at Ecology Center. “These agreements ensure that families facing the highest energy burdens will have expanded access to these critical programs.”

“The negotiated agreements will make a real, tangible difference for the pocketbooks of Michigan families and businesses across the state,” said Kari Ross, Midwest energy affordability advocate, at NRDC (Natural Resources Defense Council). “By cutting energy waste through these nation-leading programs, we aren’t just lowering utility bills; we are improving indoor comfort and health, expanding family-sustaining contractor jobs, and are reducing emissions at the same time.”

“This agreement is a positive development for the community here in the Grand Rapids area, where residents pay some of the highest utility bills in the country,” said Jan O’Connell, Senior Energy Organizer for Sierra Club Michigan. “The opportunity for community input will be critical in the success of this program, and we are excited to continue discussions with Consumers Energy about improving their EWR programs in the region.”