MI Utilities Can Face $10M Fine For Failing To Improve Reliability

MICHIGAN — Officials on Thursday approved an order that can fine Michigan electric providers, including DTE Energy and Consumers Energy, up to $10 million for failing to improve reliability.

The order is part of an initiative led by a Michigan Public Service Commission workgroup to hold the companies responsible for lengthy and frequent power outages.

"Our goal from the beginning was to develop a framework that, above all, drives improvement in reliability, particularly in the areas that are most frustrating for customers," said MPSC chair Dan Scripps in a statement. "By staying focused on a relatively small number of performance metrics closely tied to the most acute pain points experienced by customers, I’m confident that this framework will help accelerate the progress we’re already seeing in distribution and reliability improvement."

After gathering extensive input from the public, officials said the utilities can face penalties if they fail to improve:

• Average length of customer outages
• Length of time utilities take to restore power both after storms and in calm weather conditions
• Number of customers experiencing four or more outages per year
• Utilities’ worst-performing circuits

Officials said the commission modified the workgroup's initial proposal so that it will focus on "improving the fundamentals of distribution reliability." The group will then look at other issues, such as the impact of increasing demand on the grid from growth in distributed generation technologies like solar panels and electric vehicle usage.

The commission directed DTE and Consumers, which serves roughly 80 percent of Michigan's electric customers, to both file their own financial incentive and disincentive systems by April 15.

Officials capped penalties and incentives at $10 million for the 2026 calendar year.

Officials also directed the utilities to closely track reliability in U.S. Census tracts that have scores of 80 percent or more in the state’s environmental justice screening tool, MiEJScreen, to inform potential future metrics on equity, grid modernization, distributed energy resource integration, and resilience.