Commission History
Over 150 years of utility regulation in Michigan, from the Railroad Commission of 1873 to the clean energy mandates of 2023.
Michigan Railroad Commission established
The Michigan Legislature creates the Michigan Railroad Commission with a single Commissioner of Railroads, empowered to regulate railroad rates and conditions of service. The impetus: railroad monopoly pricing that farmers and shippers had no power to contest.
Expanded to three-member Railroad Commission
Act 312 of 1907 abolishes the single-commissioner office and replaces it with a three-member Railroad Commission serving staggered six-year terms.
Jurisdiction expanded to electric rates
Act 300 of 1909 extends the Commission's authority beyond railroads to include regulation of electric rates and conditions of service, reflecting the rapid growth of the electric utility industry.
Michigan Public Utilities Commission created
The Railroad Commission is abolished and replaced by the Michigan Public Utilities Commission (MPUC), a five-member body with broader regulatory jurisdiction over public utilities.
MPSC created
The MPUC is abolished. Act 3 of 1939 creates the Michigan Public Service Commission (MPSC) as a five-member panel, each serving five-year terms. This statute remains the MPSC's enabling law today.
Reduced to three members
The Legislature reduces the Commission from five to three members, with staggered six-year terms. This structure persists to the present day.
Bipartisan requirement enacted
Public Act 275 of 1951 requires that no more than two of the three commissioners may be members of the same political party, establishing the bipartisan balance that still governs the Commission.
Gas safety standards established
The MPSC first establishes Gas Safety Standards, prescribing safety requirements for pipeline facilities used to transport natural gas.
Customer Choice and Electricity Reliability Act
PA 141 of 2000 introduces retail electric competition in Michigan, but with a 10% cap on the amount of a utility's load that can be served by alternative electric suppliers.
Moved to Department of Labor and Economic Growth
Executive Reorganization Order 2003-1 transfers the MPSC to the Department of Labor and Economic Growth as an "autonomous entity" -- retaining its own statutory authority, personnel, budgeting, and management functions. The department is later renamed DELEG (Department of Energy, Labor & Economic Growth) in 2008.
Clean and Renewable Energy Act
PA 295 of 2008 establishes a mandatory 10% renewable portfolio standard for electric utilities and creates the Energy Optimization Standard (later renamed Energy Waste Reduction).
Moved to LARA
Governor Snyder renames the department to the Department of Licensing and Regulatory Affairs (LARA). The MPSC moves along with it.
Moved to Michigan Agency for Energy
Executive Reorganization Order 2015-3 transfers the MPSC out of LARA into the newly created Michigan Agency for Energy, a standalone agency under Governor Snyder.
Energy law overhaul
PA 341 and PA 342 of 2016 overhaul Michigan energy law: establishing the Integrated Resource Planning (IRP) process, renaming Energy Optimization to Energy Waste Reduction, and updating customer choice provisions.
Moved back to LARA
Executive Order 2019-06 under Governor Whitmer abolishes the Michigan Agency for Energy and transfers the MPSC back to LARA, where it remains today.
Clean energy package
Governor Whitmer signs a sweeping clean energy package: PA 229, 231, 233, 234, and 235 of 2023. Key targets include 100% clean energy by 2040, 50% renewable by 2030, 60% renewable by 2035, and a statewide energy storage target of 2,500 MW. The MPSC opens implementation cases U-21567 through U-21571.
The MPSC has been reorganized between state departments at least four times in twenty years:
Each move was accomplished by executive reorganization order, not legislation. Throughout all of these transfers, the MPSC has been designated an "autonomous entity" that retains its own statutory authority, personnel, and budgeting. The repeated shuffling reflects an ongoing tension in Michigan government about whether the Commission should operate independently or under closer executive branch control.
The MPSC currently sits within LARA, where it has been since 2019.
Sources
- MPSC Commission History -- michigan.gov
- Act 3 of 1939 (full text) -- legislature.mi.gov
- Executive Order 2019-06 -- michigan.gov
- 2023 Energy Legislation Implementation -- michigan.gov