News Story

Whitmer boasts of Michigan’s energy prices, which are high for its region

Net-zero mandates will drive up costs even more

As Gov. Gretchen Whitmer claims to be keeping energy prices low, Michigan's costs are among the highest in the region, while the state's energy reliablilty ranks low nationally.

“We’re keeping energy costs low, shoring up domestic energy production, and keeping our state competitive,” Whitmer tweeted Sept. 30, discussing renewable energy standards and the reopening of the Palisades nuclear plant.

Michigan’s energy rate for all sectors of the economy was 14.48 cents per kilowatt hour in August, according to the U.S. Energy Information Administration. This gave Michigan the highest rate in the region. Wisconsin had the second-highest rate, 13.33 cents, while Ohio had the lowest at 11.53. The average cost of electricity in the United States in August was 13.61 cents per kilowatt-hour.

The governor has pushed for a net-zero mandate to drive energy supplies away from natural gas and toward solar and wind. This mandate will cost households an additional $2,746 per year, according to Jason Hayes, director of energy and environmental policy at the Mackinac Center for Public Policy.

Attorney General Dana Nessel also seems to disagree with Whitmer’s assessment. "Michigan utility customers are already subjected to some of the nation’s highest electric rates, lowest standards of reliability and service, and utility partners who only ever ask for more and more from increasingly dissatisfied customers," Nessel tweeted in October.

Michigan came in 41st in a US News ranking of states for energy reliability, and Energy News Network has reported that the state is among the top states for power outages in recent years.

Whitmer did not respond to an email seeking 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.

News Story

Legislators avoid constitutional requirement through opaque descriptions

‘It’s trickery,’ legislative critic says

Michigan lawmakers used vague wording to skirt a constitutional requirement when they gave taxpayer money to private organizations through the 2025 state budget.

When the Legislature gives private companies taxpayer funds, the Michigan Constitution requires it do so by a two-thirds vote in both the House and Senate.

Lawmakers gave $2 million to the West Michigan Teacher Collaborative, according to the House Fiscal Agency, which reported the names of the budget’s grant recipients and the amount each received. The budget document itself, however, does not use the term “West Michigan Teacher Collaborative.” Instead, it describes the grant indirectly.

“From the funds appropriated in part 1 for community enhancement grants, $2,000,000.00 shall be awarded to a teacher collaborative located in a county with a population between 600,000 and 700,000 according to the most recent federal decennial census to support programming,” the budget reads.

Most grants in the 2025 budget are described this way. It is a longstanding practice, according to Benjamin Gielczyk, associate director of the House Fiscal Agency.

“The wording you reference (using populations) has really been the practice for enhancement grants/special grants for quite some time,” he told Michigan Capitol Confidential in an email. “It stems from how we identify specific local units in statute. For example, many statutes specific to Detroit describe it as a city with a population greater than 600,000 according to the most recent federal decennial census. Since it doesn’t specifically identify a city or local unit and uses a population range, it provides an ‘open class’ meaning technically after any census another local unit could qualify. This really deals with the two-thirds requirement under Article IV sections 29 and 30.”

Rep. Ann Bollin, R-Brighton Township, who serves on the House Appropriations Committee, scorns the practice. “It’s trickery,” she told CapCon. The vague wording thwarts accountability and transparency, she added.

Legislators need to change their practice, a legal expert told CapCon. “The Michigan Constitution is clear that laws targeted to local interests require the support of two-thirds of the Legislature,” said Steve Delie, a specialist in government transparency and open records at the Mackinac Center for Public Policy.

“The legislature should follow the process established by the Constitution, rather than employ these misleading tactics,” he said.

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.