Utility bill credits for power outages would be significantly higher under legislation introduced by state Senate Democrats.
The credits would start out at $5 an hour, in the first hour a customer loses power, and ratchet up to $25 an hour after 72 hours without electricity.
Frequent outages would also result in credits: $100 for four service interruptions in a period of 12 months, and $200 for more than four service interruptions.
Renters whose landlords pay the electric bill would be eligible for a $50 credit for spoiled food, lodging, or other costs after four hours without electricity (more if the actual loss is greater) and a $200 credit after 24 hours (also more if the actual loss is greater).
The proposed credits are much more extensive than current credits required by the Michigan Public Service Commission, which mandates a credit of $44 a day during a widespread outage, and that only begins accruing four days after a customer has lost power. Six or more power outages in a 12-month period also merits an additional $44.
Democratic State Senator Stephanie Chang (D-Detroit) is one of the bills' sponsors. She said the legislation is intended to encourage utilities to reduce outages and speed restoration, and it would also better reflect the true costs to customers of losing power.
"We are really trying to incentivize our electric utilities to do a better job of restoring power quicker," Chang said. "We have heard time and again from residents that losing power, losing food, it could be really devastating. Food is really expensive. Replacing it is expensive."
Chang said the MPSC has been working to address reliability, and the legislation reflects the state Legislature working in partnership with the regulatory agency to that end.
Other bills in the package would require regulated utilities to submit reports to the MPSC delineating the cause of service interruptions, tree trimming projections, grid hardening and reliability projects, and a list of the top 20% worst-performing circuits in the utility's service territory.
Consumers Energy said in a statement that it is reviewing the legislation.
“Michigan and New York are currently the only states that require electric utilities to issue automatic bill credits or compensation to customers," the statement continued, "and Consumers Energy complies with the outage credit requirements established by the Michigan Public Service Commission. On the topic of outages, investing in reliability improvements and restoring power safely and quickly will remain our top priorities.”
DTE Energy said in a statement that it shares Michiganders' expectation that DTE keep the lights on and keep bills as low as possible.
The statement continued, "which is why we're making historic investments in infrastructure upgrades, tree trimming and grid modernization to build a stronger, more resilient electric system."
"Across Michigan, utilities are facing increasingly severe weather that can damage electric infrastructure and disrupt service. That's why we're focused on strengthening the grid, hardening critical equipment, and deploying new technologies that help reduce outages and speed restoration when storms occur."
"We're already seeing progress, and we remain committed to continuing the investments that improve reliability while keeping energy affordable for customers. Our goal is simple: fewer outages, shorter outages, and better service for the communities we serve," DTE said.
Editor's note: Consumers Energy is among Michigan Public's corporate sponsors.
