Legislator introducing plan to save utility customers money

State Rep. Jamie Thompson is spearheading a push to make life more affordable for Downriver workers, families and small business owners.

Thompson has introduced House Bill 5879 to roll back utility rates and put more money back into people’s pockets. The plan is part of critical reforms that provide needed property tax relief for everyone in Michigan – not just select groups or political allies – and eliminate hidden costs that arise when buying or selling a home.

“I talk with people virtually every day in Monroe and Wayne counties about the high cost of living,” said Thompson, of Brownstown. “If we are serious about making Michigan affordable again and keeping workers and families from struggling paycheck to paycheck, we must tackle the issues that are impacting people’s budgets. Two areas where people are feeling a lot of strain are energy costs and being able to afford or stay in their home. These new, comprehensive plans will lower property taxes and reduce monthly bills.”

Thompson’s legislation would require 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. 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.

“For years, Lansing politicians have been making small tweaks or offering smaller, temporary rebates to provide savings for select people,” Thompson said. “Well, that’s just not working for Michigan families and people are not seeing savings when they’re being met with higher rates. We need real, bold, meaningful relief plans that overhaul the system to create lower costs year after year. These are substantial, lasting changes that people will feel in their monthly budgets.”

Thompson noted that under the plan, homeowners would save hundreds of dollars every year from lower property taxes. With personal property tax reforms delivering tax savings for equipment like machinery and computers, Thompson said her bill makes sure utilities are delivering lower costs to ratepayers.

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. Statewide, the proposals are projected to return nearly $5 billion to taxpayers.