Public utilities: rates; return on equity rates; limit. Amends sec. 6a of 1939 PA 3 (MCL 460.6a).
Key claim: HB6095 would amend Michigan’s public utility act to limit the return on equity rates that utilities may earn, constraining utility profitability through a statutory cap.
Abstract
(HB6095 · 103rd Legislature) Public utilities: rates; return on equity rates; limit. Amends sec. 6a of 1939 PA 3 (MCL 460.6a). Latest action (2026-06-17): Bill Electronically Reproduced 06/16/2026
Why this matters
Return on equity is one of the largest single drivers of utility rate cases, and Michigan’s MPSC currently sets ROE case-by-case based on cost-of-capital evidence. A statutory cap would shift that determination from a regulatory judgment to a legislative floor/ceiling, directly affecting how much investor-owned utilities like DTE and Consumers Energy can earn on shareholder capital — with knock-on effects for ratepayer bills, utility credit ratings, and willingness to fund capital projects.