Legislator’s plan will roll back rates, provide savings

State Rep. Jamie Thompson today testified on her plan that will provide lower monthly energy bills for customers Downriver and throughout Michigan.

Thompson’s bill 5879 requires natural gas and electric utility companies to pass down savings they will receive through personal property tax reforms in the most recent tax year to customers.

“The cost of living and the cost of energy is crushing Michigan families,” said Thompson, of Brownstown, when testifying before the House Government Operations Committee. “Energy is not optional. Michigan families need to heat their homes and power their livelihoods, but the price of staying warm and keeping the lights on have continued to rise way too high for far too long. My legislation works with a broader plan to require that tax savings be passed down from energy companies to consumers who pay the bills and need relief.”

State oversight would ensure a decrease in residential utility rates, and utilities would not be able to file for rate increases for two years after the savings are distributed under Thompson’s plan.

“This is essential to ensuring that our local residents and people I serve experience substantial and consistent relief on their monthly bills rather than just seeing temporary savings,” Thompson said.

Thompson highlighted in her testimony that the Michigan Public Service Commission has approved $1 billion in rate hikes on utility customers since 2023. One utility provider, DTE Energy, is asking the commission to approve a nearly $500 million rate increase less than two months after a separate $250 million increase went into effect.

Between the savings on monthly electric bills provided through Thompson’s plan and eliminating state property taxes, Michigan families will save more than $1,100 every year with the reforms. The bills will provide a roughly 14 percent reduction in property taxes for the average Michigan homeowner. Statewide, the proposals are projected to return nearly $5 billion to taxpayers.

The plans remain under consideration in the House Government Operations Committee.

PHOTO INFORMATION: State Rep. Jamie Thompson testifies on her legislation, House Bill 5879, before the House Government Operations Committee on Thursday, April 30. The plan works within a comprehensive property tax reform package to lower energy bills for utility customers throughout the state.