Analyst: Rising energy costs put Michigan rate hikes in election spotlight
As Michigan voters head toward the 2026 election, rising energy costs and potential rate hikes from the state’s two largest utilities are drawing increased attention.
In an interview on The Center Square’s daily show, The States, Sarah Montalbano, an energy policy analyst at Always On Energy Research, explained how high energy prices are playing a role in the 2026 election.
“This is absolutely top priority for a lot of voters this year,” Montalbano said.
This comes as DTE Energy has requested a $474 million electric rate hike, just months after the Michigan Public Service Commission approved a $242 million request. A separate $75 million natural gas rate increase also took effect Oct. 1.
While the company argues these hikes are necessary to continue to provide reliable energy, Montalbano said it’s important to know what these rate hikes are actually funding.
“This rate request needs to be for affordable and reliable sources,” she said. “When you dig into it and you see what they want to build, a lot of it is intermittent sources like wind and solar.”
A large battery center is another of the projects DTE is looking to fund, Montalbano explained.
“A large part of this needs to be asking the question: How is this money getting spent, and is it being spent on the right things?”
Michigan’s other major energy company, Consumers Energy, is also seeking another major electric rate increase of $456 million.
If the proposal is approved in full, Consumers estimates the average residential customer with a monthly electric bill of about $155 would see an increase of roughly $13 per month beginning in May 2027.
Consumers said there would be no immediate impact on customer bills until the request is approved. The commission has until April 2027 to issue a final decision on Consumers request, and until February 2027 for DTE’s.
Consumers Energy provides electricity to about 1.9 million customers and natural gas service to about 1.8 million customers across Michigan, while DTE Energy provides electricity to about 2.3 million customers and natural gas service to about 1.3 million customers.
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