Washington, D.C. — Despite campaign promises to slash energy prices, the Trump administration’s trade and regulatory policies are driving one of the largest utility rate hikes in Michigan’s history. In fact, the two largest utility companies in the state, DTE Electric Co. and Consumers Energy, requested massive annual rate increases. If implemented, a new analysis by the Center for American Progress finds, nearly 4.2 million—or 82 percent—of Michigan’s electric customers will pay an additional $3 billion through 2028 due in part to the Trump administration’s policies.
The Michigan Public Service Commission reviews the pending rate hikes, and testimony from both DTE and Consumers Energy show that this administration’s policies have fueled fears of higher inflation and interest rates. In fact, electricity prices across the United States in 2025 rose at 2.5 times the rate of overall inflation, and are now one of the fastest drivers of overall inflation. The administration has compounded this through:
- Tariff-driven inflation: The administration’s aggressive tariffs have increased economic uncertainty. Consequently, DTE requested a higher return on equity (10.75 percent) to offset risks associated with higher inflation and fears of an economic slowdown from federal workforce reductions and lower government spending.
- Canceled projects: The U.S. Department of Energy canceled two renewable energy and carbon sequestration grants for Consumers Energy and a $23 million grant to DTE to build microgrids in west Detroit and Port Austin—designed to reduce power outages by up to 80 percent—forcing both companies to suspend efforts to provide grid improvements at reduced costs.
- Risking clean energy financing: DTE’s conditional $7.17 billion low-interest loan, intended to provide significant interest savings for customers through 2055, is now in jeopardy following the administration’s rebranding of the program to prioritize fossil fuels.
- The Big Beautiful Bill: Independent of DTE and Consumers Energy’s requests, Michigan residents are projected to pay an additional $160 per year on their energy bills by 2030 and $320 per year by 2035 due to the Big Beautiful Bill.
“Despite promises to lower costs, the administration’s approach to trade and energy is doing the exact opposite for Michigan,” says Akshay Thyagarajan, a policy analyst at CAP and author of the analysis. “By restricting the very funds meant to make our grid more efficient and imposing tariffs that drive up interest rates, the federal government is effectively ensuring that Michigan families will see their utility bills climb for years to come.”
Read the analysis: “The Trump Administration’s Actions Are Increasing Utility Bills in Michigan” by Akshay Thyagarajan
For more information or to speak with an expert, please contact Rafael Medina at [email protected].