Electricity Rates on the Rise in Michigan

This morning's Detroit Free Press had an article about the sharp increase in electricity bills that Michigan homeowners will be paying thanks to new legislation. I understand the reason behind the increases, but Michigan's economy has been battered enough the past few years with the highest unemployment and foreclosure rates in the nation. And now there's so much more uncertainty in the financial markets and prices are rising left and right. So I just don't know if this was smart for the government to add these increases at this time.

According to the article, businesses have been subsidizing homeowner rates for years, so to make things equitable our electric rates will increase by up to $12 per month within the next five years. We also will see increases of $3 per month to help the utilities develop renewable sources of energy, plus up to $1.50 per month to pay for energy efficiency programs. So I'm looking at perhaps $17/month more on my electric bill per month. That doesn't take any rate increases into account. And thanks to the new legislation, the utility can increase their rates without getting regulatory approval first.

The article also mentions that 22% of the customers are already behind in paying their utility bills, so can you imagine how many more people will fall behind on paying their bills once these added fees start going into effect? Like I said, I understand the economics, but I just don't think the timing is right.