LANSING, Mich. (Jan. 15, 2026) — Today, Sen. Kevin Hertel (D-St. Clair Shores) introduced Senate Bill 768 to combat outrageous utility costs that have gone up 11% since Jan. 2025 and are putting the squeeze on Michiganders. SB 768 would establish a multiyear rate plan to set utility prices for multiple years, preventing surprise spikes in monthly bills and improving financial planning and stability for families in the state.
“Everywhere I go, I’m hearing from constituents about how increased costs, including high energy bills, are making it hard to get by. I know my colleagues on both sides of the aisle are hearing this from their constituents as well. I’m not afraid to take on this fight, and while other politicians point fingers and fail to solve this problem, I’m focused on finding solutions and taking action to lower costs for the people I serve,” said Sen. Hertel. “This policy takes a simple approach by locking in energy rates for years at a time to provide relief for Michiganders now and financial security and stability for Michigan families in the future.”
A multiyear rate plan (MRP) is a stronger regulation tool that delays how often utility companies can raise rates, extending it from one to three years. This enables homeowners and businesses to know their household energy costs for years at a time and make utility prices, and more importantly, consumer costs, less susceptible to short-term market and policy changes.
In addition to reining in costs and better supporting residents, an MRP also creates an incentive for utility companies to reduce spending and budget as carefully as residents need to, instead of relying on rate hikes to meet their bottom line. In particular, the proposal will allow regulators and advocates more time to scrutinize rates and encourage the energy industry to:
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Anticipate future needs by improving planning processes to ensure necessary investments are made at the lowest cost and to avoid unnecessary spending.
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Coordinate electric and gas regulation to prevent redundant infrastructure spending.
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Lower financing costs to reduce the total cost of investments funded by ratepayers.
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Incentivize reduced spending by rewarding utilities for achieving cost-efficiencies.
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Leverage competition to unveil the best solutions at the lowest price.
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Avoid inefficient system expansion by prioritizing least-cost solutions to meet grid needs and by mitigating risks of imprudent spending.
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Encourage better fuel management to reduce the impact of volatile fossil fuel prices on ratepayer bills.