TL/DR –
U.S. Representative Haley Stevens introduced a bill to Congress proposing to remove federal funding from investor-owned utilities that increase their rates for customers within a year of the last hike. The proposal stipulates that in the first year, any utility seeking an additional rate increase would lose its funding from the U.S. Department of Energy, and in the following two years, it would lose federal funding if it sought a rate hike without issuing a pay cut to its five highest-paid employees, which should be double the percentage of its intended rate increase. This bill comes after the Michigan Public Service Commission approved a $242 million increase to DTE Energy’s rates, which has signaled another rate increase case.
Federal Legislation May Penalize Utilities for Frequent Rate Hikes
New federal legislation is being proposed which could potentially penalize investor-owned utilities that increase their customer rates within one year of a previous increase. The politician behind this proposition is U.S. Rep. Haley Stevens, D-Birmingham. This comes after DTE Energy had their $242 million increase in electric rates approved by the Michigan Public Service Commission, resulting in an added cost of approximately $5 per month for typical customers.
The Proposal’s Specifics
Stevens’ proposal implies a three-year timeframe during which funding from the U.S. Department of Energy could be stripped from any utility that seeks an additional rate hike within a year of the last one. For the second and third year, if the utility seeks to increase their rates and doesn’t issue a cut in pay for its five highest-paid employees, twice the percentage of the intended rate hike, they would also lose federal funding.
However, since the rate case procedure usually stretches over one year, DTE’s electric prices, should they decide to open a new case in April, wouldn’t increase until 2027. Yet, the proposition by Stevens still faces hurdles. Given that both the House and Senate are currently Republican-controlled, with clear partisan divides, her measure may not advance through Congress.
Stevens, who is contending for one of Michigan’s U.S. Senate seats in the fall, believes it’s unacceptable for utilities to burden ratepayers with increasing costs while they record high profits. “Michigan families are paying more and more for electricity, yet too many are getting worse service in return,” Stevens said, “While hardworking Michigan families struggle to afford higher bills, corporate executives are getting richer off their backs. That is unacceptable.”
Utility Company Reactions
In February, DTE Energy reported a profit of $1.5 billion in 2025. In response to the proposed legislation, DTE spokesperson, Ryan Lowry, stated that the company is committed to “keeping bills as low as possible for our customers.” He cited recent improvements in the company’s electric service and claimed that, since 2021, DTE’s electric bill growth has been among the lowest in the country compared to other states.
Following the MPSC’s approval of DTE’s latest electric rates in February, DTE and the regulatory body pointed out that the increased rates would allow the Detroit-based utility to invest in reliability upgrades across its grid. Serving about 2.3 million electric customers primarily in southeastern Michigan, DTE also highlighted a 60% reduction in power outage duration for its customers in 2025 compared to the previous year.
In defense of the ability to file annual rate cases, Katie Carey, Director of Media Relations at Consumers Energy, another significant utility in Michigan, stated that it aids in addressing needs in the electric infrastructure. Carey added that prolonging the period between rate cases could lead to underinvestment in essential infrastructure and cause more significant cost increases for customers in the future.
This story was updated to add new information.
Contact Arpan Lobo at alobo@freepress.com
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