Senate Democrats propose significant changes to Michigan’s automatic power outage credit

After severe weather knocked out power for hundreds of thousands of Michigan residents last week, members of the Democrat-led state Senate are introducing legislation to provide Michiganders facing lengthy outages with hourly payments.

Sens. Stephanie Chang (D-Detroit), Erika Geiss (D-Taylor), Mary Cavanagh (D-Redford Township), Sue Shink (D-Northfield Township.) and Jeff Irwin (D-Ann Arbor) introduced six bills earlier this week to provide energy customers with credits on their bill based on the amount of time they are without power. 

The proposed change to the state’s outage credit would start at $5 for customers without power for an hour, increasing to $25 an hour for those whose power is out for 72 hours or longer.

The package also proposes credits for individuals who face four or more outages a year, and reimbursements to local governments and to renters whose utilities are covered by their landlord to help recoup the cost of lost food.

“Power outages continue to disrupt daily life for Michiganders across the state, and our communities should not be forced to pay the price,” Geiss said in a statement. “These blackouts disproportionately impact low-income and Black and Brown communities. This injustice is unacceptable, and utility companies must be held accountable to reimburse ratepayers and local governments bearing the brunt of their failures.”

On Thursday, members of the Michigan Public Service commission increased the current outage credit to $44 per day for those who face more than six outages a year. Customers facing outages for more than 16 hours under normal weather conditions, 48 hours under gray skies and 96 hours under catastrophic conditions are also eligible for the daily credit.

The package, which includes Senate Bills 1170–1175, was referred to the Senate Committee on Energy and Environment for further consideration. An identical package of bills was introduced by lawmakers in the Republican-led Michigan House in 2025 and remains sitting in the House Energy Committee.

Michigan’s major utilities have been the subject of criticism as customers complain of high energy bills and poor reliability.

“These increased outage credits are vital to properly compensating people for their spoiled food and medicines, hotel rentals, gas generators and all the other costs they suffer every time our monopoly utility companies fail,” said Alex Kellogg,  the energy accountability manager for the Michigan League of Conservation Voters, in a statement. “Our bills are too damn high already with the constant rate hikes DTE and Consumers demand, so Michiganders deserve a Ratepayer Bill of Rights and they should remember in November who is standing up for them and who is not.”

Katie Carey, the director of media relations for Consumers Energy, one of the state’s largest energy companies, said the company is reviewing the bills.

“Michigan and New York are currently the only states that require electric utilities to issue automatic bill credits or compensation to customers, and Consumers Energy complies with the outage credit requirements established by the Michigan Public Service Commission,” Carey said in a statement via email. “On the topic of outages, investing in reliability improvements and restoring power safely and quickly will remain our top priorities.”

Connecticut Law also requires energy companies to provide customers with a credit for outages longer than 96 hours after an emergency. In other states, customers must file a claim in order to receive compensation for lost power, spoiled food and medication and damaged appliances.