News Bite

Report: DTE peak-hour rates hurt the poor

Poorer customers suffer ‘greater discomfort indoors,’ Detroit News reports, as summer A/C costs approach California levels

When families cook and eat dinner this June in an air-conditioned home, they will pay California-level prices as a result of DTE Energy’s move in March to peak-hour pricing.

The Detroit News reports on the disparate impact peak-hour rates are having on the poor in Michigan, who can least afford such a change.

Peak hours are weekdays between 3 p.m. and 7 p.m. Off-peak hours are charged at 15.45 cents per kilowatt hour. Between October and May, the peak-hour pricing increase is modest, up to 16.75 cents per kWh.

But from June to September, peak-hour rates spike by almost 5.5 cents per kWh above off-peak rates, at 20.98 cents per kWh.

The News interviewed Symone Wilkes, 29, a mother in Detroit, about the challenges of peak-hour rates even in the cooler months of the year.

“It's not during school hours,” Wilkes told the News. “It's during when the kids are going to be at home when they’re going to be wanting to eat and wanting to stay warm.”

“It's still putting a damper in our lives,” Wilkes added.

Related reading: DTE, Consumers’ peak-hour pricing plans have it all backward

The News reports:

Michigan has become one of the first states to require peak-hour pricing as the default rate mechanism. With no ability to opt out of the new program, households wishing to keep their bills down will now be responsible for shifting their electricity use to less expensive times of day.

Experts say the program has seen mixed results elsewhere, and a University of Michigan researcher said it can put vulnerable customers at risk. In some cases, a customer could experience an unexpected and unaffordable jump in their energy bills. Others, like those requiring medical equipment, may have little flexibility to alter their electricity use during peak hours.

“Research shows that higher prices can also lead to disproportionate harm among households that already struggle paying electricity bills, and that time-of-use rates are associated with greater discomfort indoors due to less AC use in warm climates,” Claire McKenna, a doctoral researcher with a focus on natural resources policy, told The News.

Michigan’s energy regulator, the Michigan Public Service Commission, directed DTE to make peak-hour pricing mandatory. Before March, the utility had an opt-in program.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

News Story

1619 Project creator paid $50K for Oakland University teacher seminar

Total cost of teacher confab: $97K

Nikole Hannah-Jones, creator of the 1619 Project, will be paid $50,000 by Oakland University as a guest speaker at a one-day teaching seminar aimed at middle and high school teachers, according to records obtained through a Freedom of Information Act request.

The New York Times writer’s Aug. 9 presentation, at a seminar called “Teaching Race in America,” will explain how to use the 1619 Project in the classroom. The highly publicized project “aims to reframe the country’s history by placing the consequences of slavery and the contributions of black Americans at the very center of our national narrative,” according to the Times

Historians across the political spectrum have criticized the 1619 Project’s accuracy and historical assumptions, while policy experts question whether it’s appropriate for the classroom.

"The 1619 Project is opinion journalism. Its presentation of materials is biased and, in many instances, factually deficient,” Philip Magness, director of research and education for the American Institution for Academic Research, told Michigan Capitol Confidential. “Owing to the proliferation of biases and uncorrected errors, the 1619 project is ill-suited for classroom adoption.”

Magness has published a critique of the project.

Related reading: Michigan English teachers use 1619 Project in professional development seminar

Oakland University will pay $97,151 for the seminar featuring Hannah-Jones. This includes $4,000 in travel expenses for Hannah-Jones and a companion. A VIP reception will add $6,000 to the tab. Oakland University received $60.7 million from state taxpayers in the 2022-23 Michigan budget.

Real Clear Investigations reports that 12 universities paid Hannah-Jones a total of $521,000 for her speaking engagements.

Molly Macek, education policy director for the Mackinac Center for Public Policy, questioned spending $50,000 on a history curriculum disputed by scholars.

“It is essential that education funding be directed towards initiatives that taxpayers deem necessary and appropriate to improve student learning,” Macek told CapCon.

While Magness believes Hannah-Jones work is not worthy of inclusion in a curriculum, he said he does not support efforts to ban or censor the 1619 Project from classrooms. The debate around the flawed project could “provide fertile discussion material for educators,” he said. However, Magness added, Hannah-Jones’ actions show she does not want a balanced debate.

“In that case, the public has no obligation to subsidize a factually deficient and politicized curriculum through the expenditure of tax dollars,” Magness told CapCon.

Oakland University did not respond to a request for comment.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.