Benson promises to freeze energy prices as governor

Secretary of State Jocelyn Benson, a Democrat running for governor, said she will freeze energy prices to give families relief from excessive energy costs, according to The Detroit News. But she would not have that power under state law.

“On her first day as governor,” Alyssa Bradley, communications director for Benson’s gubernatorial campaign, told the News in a Jan. 4 article, “Benson would declare an electricity cost freeze to give families relief from excessive energy costs and demand a transparent, accountable rate-setting process.”

Benson also vowed to “take immediate action” to reduce energy costs.

The rates consumers and businesses pay for electricity and natural gas are set not by the governor but by the Michigan Public Service Commission, whose responsibilities are defined in state law.

State regulators have the authority to decide such matters, the Michigan Supreme Court affirmed in a 1982 case Consumers Power Co v. PSC.

“The power to decide whether any rate relief should be provided and whether immediate relief shall be provided is vested in the commission,” the court ruled. “Because the authority to set utility rates is vested in the commission and statutory procedures must be observed, the judicial role is limited.”

A governor can declare an energy emergency under Public Act 191 of 1982, which does not explicitly allow the governor to freeze rates established by the commission. The governor’s emergency powers under the act cannot last longer than 90 days without legislative approval.

“As governor, Jocelyn Benson will implement policies on day one to ensure that no Michigander sees their energy prices rise any further,” Bradley wrote in an email to Michigan Capitol Confidential.

Benson would also direct executive agencies to oppose rate hikes in regulatory proceedings, Bradley wrote, and appoint independent state regulators who would put Michigan ratepayers over corporate special interests. Finally, Bradley said, a declared state of emergency would allow the governor to divert resources to providing relief to utility customers.

“Michiganders are paying some of the highest electricity costs in the country and Secretary Benson will use every tool at her disposal to make life more affordable for the families who call this state home,” Bradley said.

Bradley pointed out that New Jersey’s new governor, Mikie Sherill, promised similar plans to freeze energy prices on her first day in office.

Gov. Gretchen Whitmer extended deadlines for paying property taxes during the COVID pandemic, and Benson, as governor, could take similar action to institute “what’s effectively an energy tax holiday,” Bradley said.

A policy analyst with the Mackinac Center for Public Policy used a March 2024 commentary to argue that policies enacted by Whitmer and the Legislature will, over time, raise energy costs for state residents by the equivalent of two mortgage payments per year.

Josh Antonini, an energy and environmental policy research analyst at the Mackinac Center, said that Whitmer’s Health Climate plan has raised electricity costs.

“Make no mistake: Electricity costs are high because of Governor Whitmer's policies, chief among them her climate mandates,” Antonini told CapCon in an email. “She wants to close reliable supply and increase demand through electrification pushes, all while pretending that higher prices are a surprise. Benson supports Whitmer's climate mandates, and while better rate case advocacy may help some in the short run, the bills will stay high unless Benson undoes the policies of her governor and her party. Declaring a state of emergency after policies you support created the emergency reveals a shocking lack of self-awareness.”