Utility Return on Equity Cap (HB6095)

Current understanding

HB6095 would amend Sec. 6a of 1939 PA 3 (MCL 460.6a) to impose a statutory limit on the return on equity (ROE) rates that public utilities may earn under MPSC-approved rate cases. If enacted, the cap would constrain utility profitability on the equity portion of their rate base — a departure from the current practice in which the MPSC sets ROE case-by-case based on evidentiary record and cost-of-capital analysis. Status: introduced.

Evidence log

• 2026-06-10 — Public utilities: rates; use of actual cost for setting utility rates; require. Amends sec. 6a of 1939 PA 3 (MCL 460.6a).: cross-connection with utility-actual-cost-ratemaking-sb1031: Both amend Sec. 6a of 1939 PA 3 to tighten rate-setting: SB1031 requires actual costs while HB6095 caps allowed return on equity. (novelty: 3)
• 2026-06-16 — Public utilities: rates; return on equity rates; limit. Amends sec. 6a of 1939 PA 3 (MCL 460.6a).: cross-connection with rate-case-cost-recovery-prohibition-hb6094: Part of a coordinated House package targeting utility ratemaking: HB6094 restricts what costs utilities can recover through rate cases, while HB6095 caps the allowed return on equity applied to the remaining rate base. (novelty: 3)

Open questions

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