Michigan Senate Democrats filed six bills (SB 1170–1175) to expand automatic outage credits for customers affected by prolonged blackouts, with payments starting at $5 after one hour and rising to $25 per hour for outages lasting 72 hours. The measures would also create credits for customers with repeated outages and allow reimbursements for renters and local governments. The bills build on existing Michigan Public Service Commission protections and now head to the Senate Committee on Energy and Environment.
Michigan Senate Democrats Push Hourly Payouts for Customers After Prolonged Blackouts
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Michigan Democratic lawmakers have introduced a six-bill package to change how utilities compensate customers after extended power outages, arguing that residents should not personally absorb costs for ruined food, lost medicine and other emergency expenses when the lights go out.
What the Bills Would Do
Senate Bills 1170–1175, sponsored by Sens. Stephanie Chang (Detroit), Erika Geiss (Taylor), Mary Cavanagh (Redford Township), Sue Shink (Northfield Township) and Jeff Irwin (Ann Arbor), would expand automatic outage credits and create a clear, escalating schedule of payouts.
Under the proposals, credits would begin at $5 after one hour without power and increase over time, reaching $25 per hour for outages that last 72 hours. The package would also create credits for customers who experience four or more outages in a single year. The bills extend eligibility beyond typical ratepayers to include renters (when utilities are paid through landlords) and local governments seeking reimbursement for costs like spoiled groceries and emergency services.
“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. “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.”
Regulatory and Legislative Context
The proposals arrive amid growing public frustration in Michigan and nationwide over reliability and rising utility bills. State regulators already offer some protections: the Michigan Public Service Commission 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.
A companion package was introduced in the Republican-led Michigan House in 2025 and remains in the House Energy Committee. The Senate bills now move to the Senate Committee on Energy and Environment for consideration.
How Michigan Compares
At present, Michigan and New York require utilities to provide outage credits or compensation; Connecticut has a similar rule that triggers credits when an outage continues beyond 96 hours following an emergency. Advocates say proposals like Michigan's could serve as a model for other states seeking clearer rules on who bears the costs after weather- and disaster-driven outages.
Broader Issues
Lawmakers and consumer advocates stress that reimbursing customers after outages addresses only part of the problem. Long-term solutions include infrastructure upgrades, improved grid resilience and fair utility rates. Related regional issues include plans by some northern Michigan utilities to bury new lines after ice storms, concerns from renters about rising power costs, and debates over which large electricity costs should be passed on to ratepayers.
Next step: Senate Committee on Energy and Environment.
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