\_Regulators say low-income households should spend no more than 6% on energy bills.\_

by Briana Rice

 

Karen Johnson Moore and her husband Columbus Moore are working hard to lower their DTE Energy bill, which topped $500 in February for gas and electric combined. 

Years ago, they paid to have solar panels installed — but the couple said they never worked. They try to use as little electricity as possible, unplugging appliances and turning off lights when they’re not needed, but they’re still struggling to pay their bills. 

A high utility bill “just throws your whole budget out of whack,” Johnson Moore said. “When it gets 90 degrees … we have to keep it under 80 in order to be comfortable.” 

Earlier this month, Michigan regulators adopted a goal of limiting combined gas and electric costs for low-income households to no more than 6% of their income. But the state is still designing the program, and many struggling households, like the Moores, may not qualify. 

The Moores, who are retired and live in Detroit’s North Rosedale Park neighborhood, remember when even in the hottest and coldest months, their electric bills were rarely more than $200. 

“I could pay $175,” Johnson Moore said. “That would make a big difference in my budget. 

 

**‘It’s sad, it’s avoidable, and it’s overdue’**  

For years, Michigan has relied on a patchwork of assistance programs to help residents avoid utility shut-offs. But advocates and lawmakers say those programs often run out of money and offer only temporary relief. 

Joi Deshotel is frequently at risk of DTE shutting off her electricity. She lives in a bungalow she inherited from her mom on the city’s westside with her two sons, ages 8 and 10. She said she tried unsuccessfully to sign up for emergency assistance at least five times. 

“Every day I would get on” the phone, Deshotel said, often starting first thing in the morning, but never got through. 

At one point, she said, she finally reached a representative at a social service agency only to learn they were out of funding. 

Deshotel eventually turned to DTE’s payment plan, which protects customers from shut-offs as long as they keep up with monthly payments. By May, Deshotel was about $1,700 in debt to the utility. 

“People are struggling. … Even folks who are on the payment plan are saying the payment plan is so high it doesn’t even feel like a payment plan,” said state Rep. Tonya Myers Phillips (D-Detroit). 

She said Michigan’s current system relies too heavily on temporary assistance rather than addressing an underlying affordability problem. 

“It’s time to adopt a different approach, and we should not turn a blind eye to over 200,000 people that had their utility shut off,” Phillips said, referring to the more than 213,000 residential electric disconnections DTE conducted for nonpayment last year. “It’s sad, it’s avoidable, and it’s overdue.” 

The affordability target set by the Michigan Public Service Commission (MPSC), in charge of regulating utilities, reflects findings from a DTE pilot program in which more than 2,000 customers paid no more than 6% of their income on one utility, or 10% on electricity and gas combined. DTE said participants experienced fewer disconnections and more consistent payments, and that the discount “provided meaningful relief” from unaffordable energy costs. 

State regulators say residential electric costs have risen less quickly than inflation in recent years, but shut-offs have continued to climb. Earlier this year, the MPSC approved a $242.4 million rate hike for DTE electric customers. 

**DTE electric shut-offs for nonpayment remain near record highs**  

A spokesperson for the commission said regulators don’t know how many DTE customers currently pay more than 6% of their income on energy costs. 

“Data like this can be difficult to track because of lack of information about household income as well as variations in energy use among residential customers,” MPSC spokesperson Matt Helms said. “Nationally, the U.S. Energy Information Administration’s 2024 Residential Energy Consumption Survey found that 33% of American households experienced energy insecurity, up from 27% in 2020.” 

**A new approach to affordability**  

State regulators say there’s no timeline for implementing the affordability goal. Helms said the MPSC expects to file an implementation plan by February. 

Evette Hollins, vice president of customer and community engagement at DTE, said the utility wants to see an affordability program in Michigan. 

“We are strong supporters of programs like that,” Hollins said. “The right funding mechanism is needed to ensure that we can expand that program to meet the need. But absolutely, we would support programs.” 

Other states, including Ohio, New York and Minnesota, have adopted, tested or plan to implement programs that either cap utility costs at a percentage of household income, or automatically enroll eligible residents in assistance programs. 

Last year, the state expanded eligibility for the Michigan Energy Assistance Program, or MEAP, to households earning up to 60% of the state median income, or $61,861 annually for a family of four. 

If eligibility for a statewide affordability program mirrors MEAP, Deshotel would likely qualify — potentially capping her monthly electric bill at $84. 

The Moores, despite struggling to pay their bills, likely would not qualify. 

“Everything is already going up, increasing, increasing every day,” Deshotel said. “We all need a little relief.” 

Michigan set an affordability goal for utility bills. For some Detroiters, help can’t come soon enough