Updates About Infrastructure

Last week, the Michigan Public Service Commission (MPSC) authorized Consumers Energy to raise rates on natural gas by 4.3%. The latest increase will let Consumers Energy raise $139.2 million from the company’s customers. Consumer’s Energy requested the rate hike in October of last year, just one month after being approved for a natural gas rate increase of $157.5 million. In the latest increase, MPSC also approved a 9.8% return on equity, which determines how much profit the utility can earn on its capital investments.

Attorney General Dana Nessel’s office argued in a statement that Consumers Energy’s rate hike request included inflated spending projections and unreasonable profit margins. The office urged the MPSC to reject the higher service charges as well as the proposal that would allow the utility to recover lost revenue from customers during warmer months and periods of lower sales.

Currently, both DTE Energy and the Upper Peninsula Power Company (UPPCO) have electric rate increases yet to be approved or denied by the MPSC. DTE operates in the southeast part of the state and serves 2.3 million electric customers, and 1.4 million for natural gas. UPPCO provides electricity to over 52,000 Upper Peninsula residents. Consumers Energy provides electricity to approximately 1.9 million Michigan residents and natural gas to 1.8 million.

Gotion, Inc., the developer of the proposed $2.36 billion electric vehicle battery plant near Big Rapids that was approved in 2022, is disputing The Michigan Strategic Funds’ efforts to recover $23.7 million in previously given grant money. The Michigan Strategic Fund issued a notice of default in September 2025, citing a lack of activity at the project site for three months. Recently, the Department of Attorney General weighed in and called for all Site Strategic Readiness Plan grant dollars given to the company to be repaid immediately.

In a letter to the state (first reported by Crain’s Detroit Business), Gotion asserted it is not in default under the grant agreement and instead said that project delays have occurred due to local opposition and legal challenges. The company claims that much of the funding has already been spent on buying land for the project and early construction. The only resolutions offered by Gotion included the township buying back the land for same amount that Gotion previously paid, or transferring the land to the state instead of repaying the grant funds.

Governor Whitmer’s 2025 State of the State Address featured several initiatives that emphasized public health and improving outcomes for Michigan children. A few of her noteworthy priorities include:

¶Healthcare Initiatives

The Governor emphasized her continued commitment to expanding healthcare access, with a focus on reducing prescription drug costs and improving maternal healthcare. She proposed additional funding to support community health programs and initiatives to address disparities in healthcare access, particularly in underserved communities.

¶Medical Debt

A historic allocation of $4.5 million is set to ease the burden of medical debt affecting nearly 700,000 residents, ensuring that health emergencies do not lead to long-term financial hardship.

¶Vaping Tax

In an effort to curb youth vaping and promote healthier communities, Whitmer proposed closing longstanding loopholes by introducing a new tax on vaping products similar to cigarettes. The revenue generated would be directed toward public health initiatives and educational campaigns aimed at preventing youth nicotine addiction.

¶No Phones in Class

To enhance learning environments and reduce distractions, the Governor suggested a statewide policy restricting cellphone use in classrooms. The goal is to improve student engagement, academic performance, mental health, sociability, and overall well-being.

¶Children’s Literacy & Education

The Governor highlighted a renewed focus on early childhood literacy, proposing increased investment in reading programs, teacher training, and access to educational resources to ensure students meet grade-level proficiency standards.

¶Mental Health & Child Care

Expanding support programs, the address highlighted efforts to nurture mental well-being and expand affordable child care, reinforcing the link between mental health and educational success. Whitmer emphasized the critical need for enhanced funding and integration of mental health services in schools and communities to ensure that both children and their caregivers have timely access to comprehensive support.

In addition to these priority areas, Governor Whitmer touched on several other important initiatives in her speech:

• Housing Investments: A $2 billion plan to build, buy, or repair nearly 11,000 homes, creating over 10,000 construction jobs and reducing living costs.
• Energy Assistance: Expansion of the Michigan Energy Assistance Program to help tens of thousands of households save on winter utility bills.
• Tax Relief: Measures including a retirement tax rollback and expanded Working Families Tax Credit to put over $1 billion back into households.
• Permitting & Licensing Reforms: Streamlined processes aimed at accelerating construction and job creation.
• Workforce Development: Initiatives to boost job skills and educational opportunities, including targeted outreach to young men for tuition-free career and technical programs.
• Road Funding: Proposed investments in road maintenance and infrastructure upgrades aim to improve transportation safety and efficiency, benefiting all Michiganders and supporting local economies.

You may read Governor Whitmer’s entire 2025 address HERE for a detailed outline of her 2025 priorities.