Michigan lawmakers want to significantly change how utilities compensate customers for extended blackouts, saying residents should not be left to pay for ruined food, lost medicine, and other emergency costs on their own when the power goes out.
Here's what to know
Six bills introduced by Democratic state senators would substantially expand the automatic credits that utility customers receive after outages, according to the Michigan Advance.
Senate Bills 1170-1175 were filed by Sens. Stephanie Chang of Detroit, Erika Geiss of Taylor, Mary Cavanagh of Redford Township, Sue Shink of Northfield Township, and Jeff Irwin of Ann Arbor.
Under the package, as described by the Advance, credits would begin at $5 after a customer has been without electricity for one hour and would rise over time to $25 per hour once an outage lasts 72 hours. The bills would also establish credits for customers who go through four or more outages in a year.
The legislation would reach beyond ordinary utility bill credits by also reimbursing local governments and renters whose utility charges are paid through landlords, helping them recover some of the costs of spoiled groceries.
"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 press release last week.
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"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."
More background
The proposal comes as frustration builds in Michigan and across the country over power reliability and higher utility bills, with major providers facing repeated customer criticism.
Regulators in the state have already expanded existing safeguards. The Michigan Public Service Commission now provides a $44-per-day outage credit to customers who have more than six outages in a year, and that same daily credit applies when outages last more than 16 hours in normal weather, 48 hours in gray-sky conditions, and 96 hours in catastrophic conditions, the Advance reported.
The issue has been a topic of active discussion among Michigan lawmakers for some time now: A matching package was introduced in the Republican-led House in 2025, according to the local news outlet, and it remains in the House Energy Committee.
What's being done?
The bills' next stop is the Senate Committee on Energy and Environment.
Currently, Michigan and New York are the only states that require electric utilities to provide customers with such bill credits or compensation.
Connecticut has a similar rule, requiring energy companies to provide a customer credit when an outage continues for more than 96 hours after an emergency.
Proposals like this one out of Michigan could expand across the country to meet more customers' needs amid a range of weather- and disaster-related outages.
Where can I learn more?
Michigan's proposed blackout payouts are part of a much wider fight over power reliability, rising bills, and who shoulders the cost when the grid goes down. These articles look at how outages, infrastructure upgrades, and billing disputes are driving that conversation in the region:
• In northern Michigan, a utility plans to bury all new lines after weeks-long ice outages.
• In Michigan, renters say rising power costs are straining even the smallest apartments.
• In not-so-far-away Kentucky, a congressman urged utilities to not stick ratepayers with data center power costs.
The stories underscore that reimbursing customers after a blackout addresses only part of the problem — cutting outages in the first place and keeping utility bills in check are just as important.
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