Report: Progressive policies push Michigan energy prices higher

A conservative group of state lawmakers and private sector leaders blames Michigan’s progressive approach as the reason ratepayers pay more than the national average for energy.

The American Legislative Exchange Council recently released its Energy Affordability 2025 report, which the group says exposes the high cost of government overreach as it relates to energy prices.

“Energy costs are a year-round concern – whether you’re heating your home in the winter or keeping it cool in the summer,” said Jake Morabito, director of the ALEC Energy, Environment, and Agriculture Task Force. “States that embrace free-market solutions instead of overregulation provide a more affordable and reliable energy landscape for everyone.”

The report says Michigan’s average retail price of 13.2 cents per kilowatt-hour ranks 38th in the nation for affordability.

The report called the state’s electricity generation diverse with 37% coming from natural gas, 31% from coal, 23% from nuclear, 8% from wind and 1% from petroleum. It cited the use of older coal plants heavily regulated by the federal government as one reason for higher costs.

The other, it says, is the state’s push for renewable energy sources.

“One of the primary factors driving Michigan’s high electricity prices is the state’s energy policy,” the report summary says. “Michigan has implemented a renewable portfolio standard that requires a growing share of electricity to come from renewable sources, which has led to significant investments in wind energy and other renewables. While these investments align with the state’s progressive environmental goals, they also contribute to higher current electricity prices as utilities pass on the costs of developing new infrastructure to consumers.”

The report also cited overall reliability concerns with nine reported incidents that showed grid instability.

According to the report, the states with the best energy prices are Wyoming, North Dakota, Idaho, Utah and Nebraska. It showed Hawaii, California, Massachusetts, Connecticut and New Hampshire have the highest prices.