The Michigan Public Service Commission spent 2024 working to improve the reliability of Michigan’s electric grid while implementing new energy laws and expanding public engagement to encourage more customer participation in regulatory matters before the Commission.

The MPSC’s 2024 Annual Report highlights the MPSC’s broad approach to making Michigan’s power grid more reliable and resilient, including receiving and analyzing results from a first-of-its-kind comprehensive, third-party audit of the electric distribution systems of Michigan’s two largest electric utilities, DTE Electric Co. and Consumers Energy Co. The audit results will continue to inform efforts and future actions the Commission will take to drive down the number of outages, reduce restoration times and keep Michiganders safe from downed power lines.

Among other efforts to improve electric reliability, the MPSC in 2024:

  • Worked to establish financial penalties for poor performance and incentives for improvement through the work of its Financial Incentives and Disincentives workgroup in the MPSC’s MI Power Grid effort.
  • Launched new webpages with electric distribution system reliability metrics, adding transparency to utility reliability performance. The data cover the average duration of outages, how long it takes to restore service, the frequency of outages, and the number of times a customer experiences an outage.
  • Continued to support utility expenditures to increase tree trimming. Fallen trees, branches and limbs are the single largest source of power outages in Michigan.
  • Increased the amount of the bill credit that customers who endure lengthy or frequent power outages are eligible to receive to $40 per day, providing an accommodation for those who lose electric service while incentivizing electricity providers to improve reliability and shorten outages.

The annual report also notes early signs of progress resulting from efforts to improve system reliability, with DTE Electric and Consumers Energy reporting reductions in power outage minutes and the time it took to restore power in 2024. Consumers Energy reported 21 fewer outage minutes per customer in 2024 and that 93% of customers who lost power were restored within 24 hours, up from 87% in 2023. DTE Electric announced a nearly 70% reduction in customer time spent without power in 2024 compared to the year before, which the company credited to grid improvements in addition to less severe weather.

The annual report, which must be filed the first Monday of March each year, also recaps accomplishments in many other important areas of the MPSC’s work.

Customer assistance

The MPSC assisted 11,514 customers who contacted the agency’s call center for help with complaints or other energy and telecommunications issues. The MPSC awarded $54 million in grants through the Michigan Energy Assistance Program (MEAP), providing home energy assistance and self-sufficiency services to 55,732 income-eligible customers.

The Commission also worked to support the passage of the expansion of benefits through MEAP. Legislation signed by Gov. Gretchen Whitmer in 2024 raised the income eligibility threshold for Michigan households to be eligible to receive MEAP support and the amount that may be raised each year for it. MEAP ultimately could provide energy assistance to as many as 335,000 households per year, up from an average of around 50,000 households per year in recent years.

Energy rates

The Commission issued orders in eight rate cases in 2024. On the electric side, there were rate cases for Consumers Energy (U-21389), Indiana Michigan Power Co. (Case No. U-21461), Alpena Power Co. (Case No. U-21488), Upper Peninsula Power Co. (Case No. U-21555), and Northern States Power Co. (Case No. U-21565). On the natural gas side, there were rate cases for Consumers Energy (Case No. U-21490), Michigan Gas Utilities Corp. (Case No. U-21540) and DTE Gas Co. (Case No. U-21291).

The utilities requested a total of more than $695 million in additional revenues. After reviewing each rate case in detail, including examination of all line items sought by the companies, the Commission found almost $279.3 million of the requests were reasonable and prudent investments that will benefit customers.

Community engagement

The Commission continued to do more to expand public engagement with regulatory matters at the MPSC.

The Commission held public hearings in several locations around Michigan on a variety of topics: 1) Detroit in March on implementation of the 2023 energy laws; 2) Marquette in July on an Upper Peninsula Energy Study; 3) Flint in August on expanding public participation in MPSC matters; 4) Detroit in September on a DTE Electric Co. rate case; and 5) online in October on proposed electric transmission upgrades by Michigan Electric Transmission Co.

In addition, the Commission held two regular Commission meetings outside of its Lansing headquarters –Grand Rapids in June, and Escanaba in October.

MPSC outreach Staff attended 31 community events where they shared information resources with event attendees, answered questions, built relationships, and took utility complaints.

Pipeline safety

MPSC Staff conducted 1,049 inspection days on natural gas pipeline safety inspections. Staff also conducted 55 days of inspection activity at the direction of the federal Pipeline and Hazardous Materials Safety Administration of interstate pipeline operators. The MPSC authorized and monitored the replacement of more than 360 miles of gas distribution pipelines and the moveout of about 22,790 gas meters from inside homes. In addition, Staff identified 74 violations of state gas safety standards and leveled $95,000 in civil penalties.

The Commission also worked with partners in the Legislature to enact Public Act 131 of 2024, which increases the penalty limits for pipeline safety violations to mirror federal law. Michigan’s penalty limits had not been updated in 30 years and were among the lowest in the nation, jeopardizing Michigan’s ability to maintain its delegated pipeline safety authority from the federal Pipeline and Hazardous Materials Safety Administration (PHMSA).

Implementation of 2023 energy laws

The Commission established a new section of the agency to handle new responsibilities established under Public Act 233 of 2023, which grants the MPSC siting authority for utility-scale wind, solar and energy storage facilities under certain conditions. PA 233 went into effect Nov. 29, 2024. The Commission in October approved application instructions and procedures for projects that meet PA 233’s requirements.

More information on the Commission’s work to implement PA 233 and other 2023 updates to the state’s energy laws is available at the MPSC’s webpage tracking the implementation.

Telecommunications and broadband

The MPSC’s Telecommunications Division worked to ensure Michiganders are aware of the federal and state Lifeline programs, which provide discounts for phone and internet service. The Universal Service Administrative Company reports that 335,067 Michigan customers are served through Lifeline with broadband, voice or bundled services.