What Does the Michigan Public Service Commission Do?

The Michigan Public Service Commission regulates the state’s investor-owned electric and natural gas utilities, traditional landline telephone companies, and intrastate motor carriers that haul property for hire. In practical terms, it decides what you can be charged for electricity and gas, sets the service standards those utilities have to meet, enforces consumer protections against shutoffs and excessive deposits, and handles complaints when something goes wrong between you and your utility.

What the MPSC Regulates — and What It Doesn’t

The commission’s jurisdiction is broad on energy and narrow on nearly everything else. It covers all public utilities in Michigan except municipally owned utilities, which means if your power comes from a city-owned system, the MPSC is not your regulator.

On telecommunications, the authority is much smaller than most people assume. Under the Michigan Telecommunications Act, oversight applies primarily to traditional wireline (landline) phone service, and retail rates for that service are no longer regulated.1State of Michigan. Telecommunications The act explicitly excludes cellular service, retail broadband, internet services, paging, video and cable service, and interconnected voice-over-internet-protocol service from MPSC regulation.2State of Michigan. Michigan Telecommunications Act The commission does resolve disputes between telecom providers and customers, enforces interconnection agreements under federal law, and has a limited role in cable disputes under the Video Franchise Act.

Under the Motor Carrier Act, the commission supervises intrastate transportation of property by motor vehicle for hire, including household goods movers. It sets insurance and bonding requirements, issues certificates of authority, and investigates complaints.3Michigan Legislature. The Motor Carrier Act – Act 254 of 1933 Ride-share services like Uber and Lyft are not under MPSC jurisdiction; those are handled by the Department of Licensing and Regulatory Affairs.

Energy Rates and Reliability

Energy regulation is the commission’s largest job. When an electric or gas utility wants to raise rates, it has to file a request and prove the increase is justified. The MPSC reviews the utility’s costs, projected investments, and rate of return in detailed proceedings. Utilities carry the burden of proof, not customers.

The commission also sets service quality standards with real financial consequences for utilities that fail. Since October 2025, residential customers who experience extended outages automatically receive a bill credit of $42 per day.4State of Michigan. MPSC Raises Bill Credit to $42 for Customers Experiencing Long or Repeat Outages The point at which the credit begins depends on how widespread the outage is:

  • Normal conditions: after 16 hours without power.
  • Gray sky conditions, where 1% to 10% of customers are affected: after 48 hours.
  • Catastrophic conditions, where more than 10% of customers are affected: after 96 hours.
  • Customers who experience more than six sustained interruptions in a single year also qualify.

The $42 figure is a 68% increase over the credit customers received before the commission updated its service quality rules in 2023.4State of Michigan. MPSC Raises Bill Credit to $42 for Customers Experiencing Long or Repeat Outages Credits are paid directly to affected customers.

Clean Energy Standards

Public Act 235 of 2023 established binding clean energy standards requiring electric providers to source at least 80% of their energy from clean sources by 2035 and 100% by 2040.5Michigan Legislature. Act No. 235 Public Acts of 2023 Renewable energy requirements hold at 15% through 2029, jump to 50% for 2030 through 2034, and rise to 60% starting in 2035. The MPSC determines the costs and savings from compliance and folds those figures into customer rates.

Renewable Energy Siting

Public Act 233 of 2023 gave the commission authority over where large-scale renewable energy facilities can be built. Effective November 29, 2024, the MPSC can issue siting certificates for solar facilities of 50 megawatts or more, wind facilities of 100 megawatts or more, and energy storage facilities of at least 50 megawatts with 200 megawatt-hours of discharge capacity.6Michigan Legislature. Act No. 233 Public Acts of 2023 When the commission issues a certificate, it overrides any local ordinance that would prohibit or impose stricter requirements on the facility. That shift between state and local control has generated considerable debate in communities where large projects are proposed.

Protections for Residential Utility Customers

Several concrete protections apply to residential customers of regulated utilities. A utility must give at least 10 days’ written notice before a shutoff and cannot disconnect you for failing to pay for merchandise or appliances purchased from it. Residential customers have 21 days to pay a bill, and late charges are capped at 2%.

Winter Protection Plan

During the heating season, which runs from November 1 through March 31, Michigan’s Winter Protection Plan prevents utilities from shutting off heat-related service to qualifying customers.7Michigan Legislature. MCL – Section 460.9r – Postponement of Shutoff of Service During Heating Season Two groups qualify:

  • Seniors age 65 and older, regardless of income. If a senior’s service was already shut off before enrolling, the utility must restore it during the heating season without requiring payment.
  • Low-income customers with household income at or below 150% of the federal poverty level, or who receive state emergency relief, food assistance (SNAP), Medicaid, or SSI.

Low-income enrollees must pay at least 7% of their estimated annual bill each month during the protection period. Any unpaid balance at enrollment can be paid off in equal monthly installments between the enrollment date and the start of the next heating season.7Michigan Legislature. MCL – Section 460.9r – Postponement of Shutoff of Service During Heating Season

Medical Emergency Postponement

If you or a household member has a certified medical emergency or depends on life-support equipment, a utility must postpone a shutoff for up to 21 days. You can extend the postponement in additional 21-day periods up to 63 days with updated medical certification.8Michigan Legislature. MCL – Section 460.9s – Postponement of Service Shutoff If service has already been disconnected, the utility must restore it under the same terms. The provider is not required to grant more than 126 total days of extensions per household in any 12-month period. Certification must come from a physician or public health official and identify the medical condition, any equipment in use, and the time period during which losing power would worsen the emergency.

Security Deposits

Utilities cannot require a residential deposit based on credit score (if you have utility payment history within the last six years), income, home ownership, race, age, or similar factors. If the deposit stems from a prior unpaid balance, it cannot exceed two times your average monthly bill. If it follows a shutoff for nonpayment within the past 12 months, the cap drops to the utility’s system-wide average monthly bill. After 12 consecutive on-time payments, the utility must refund the deposit plus 5% interest.

Energy Assistance

The Low-Income Energy Assistance Fund finances the Michigan Energy Assistance Program (MEAP), which provides bill payment help and self-sufficiency services to low-income households.9State of Michigan. Michigan Energy Assistance Program Public Acts 168 and 169 of 2024 removed the previous $50 million annual cap on the fund and allowed the monthly surcharge that supports it to rise in $0.25 increments up to $2.00. Michigan utilities also run Energy Waste Reduction programs that help customers lower consumption through rebates and efficiency measures; participating directly cuts your bill.

How to File a Complaint Against Your Utility

The commission offers two complaint paths. Most people start with the informal process, which is quicker and does not require a lawyer.

Informal Complaints

When you file an informal complaint, the MPSC forwards it to the utility for investigation. The company has up to 10 business days to look into the issue and work toward a resolution, and may contact you directly during that period. The company then sends a detailed response to the MPSC, which reviews it for compliance with applicable rules before communicating findings to you.10State of Michigan. Inquiries and Complaints

Formal Complaints

A formal complaint is a trial-like proceeding before an administrative law judge. It makes sense when the informal process has not resolved the problem or when the dispute involves a legal violation. You carry the burden of proof, meaning you must present evidence supporting your case and the remedy you want.10State of Michigan. Inquiries and Complaints

You must submit three written copies of the complaint that include the specific MPSC rules, laws, or tariff provisions you believe were violated, a detailed description of the dispute, the resolution you are seeking, and all documentation you plan to use as evidence. Residential customers can represent themselves. Small businesses and commercial customers must have an attorney file on their behalf, though sole proprietors and partnerships are exempt from that requirement. The utility will always have legal representation at the hearing.10State of Michigan. Inquiries and Complaints

Weighing In on Decisions That Affect Your Bill

Rate cases, integrated resource plan reviews, and rulemakings are open to public comment. The commission’s website lists case filings, hearing schedules, and final decisions, and anyone can submit comments during open proceedings. For a non-party trying to influence what a utility will be allowed to charge or build, that comment period is the most direct route available.