How It Works
The regulatory process at the Michigan Public Service Commission: how rate cases move from filing to final order, what types of proceedings exist, who participates, and how the agency is organized.
From initial filing to final Commission order, the process follows a structured sequence with strict timelines.
Utility files application
The utility requests a rate increase by filing an application with the Commission, accompanied by prefiled testimony and supporting exhibits that justify the proposed rates.
Intervenors respond
The Attorney General (as ratepayer advocate), environmental groups, industrial customer groups, municipalities, and other interested parties file petitions to intervene in the case.
Discovery and testimony
Parties exchange evidence through formal discovery. Intervenors and Commission Staff file their own direct testimony, followed by rebuttal testimony from all sides.
Evidentiary hearing
An Administrative Law Judge (ALJ) from the Michigan Office of Administrative Hearings and Rules (MOAHR) presides over formal evidentiary hearings. Witnesses are cross-examined and exhibits are admitted into the official record.
Briefs
After the hearing closes, all parties file initial briefs summarizing their positions and the evidence, followed by reply briefs responding to other parties’ arguments.
Proposal for Decision (PFD)
The ALJ issues a Proposal for Decision containing findings of fact and conclusions of law. This is a recommendation, not a final order. The ALJ does not make the ultimate decision.
Exceptions
Parties file exceptions (objections) to the PFD, identifying errors of fact or law and arguing for changes. Other parties may file replies to exceptions.
Commission Order
The three Commissioners review the full record and vote on a final order. The Commission may adopt, modify, or reject the ALJ’s PFD. By statute, the Commission must issue its decision within 10 months of the original filing.
10-month deadline: Michigan statute requires the Commission to issue a final order within 10 months of the utility's initial filing. If the Commission fails to act, the utility's requested rates may take effect subject to refund.
Rate cases are the most visible, but the MPSC handles a range of proceeding types.
Rate Cases
Utility requests to change the rates charged to customers. The utility must prove proposed rates are just and reasonable.
Fuel Cost Recovery
Power Supply Cost Recovery (PSCR) for electric utilities, Gas Cost Recovery (GCR) for gas utilities. Fuel costs fluctuate with markets and are reconciled annually through separate proceedings.
Integrated Resource Plans (IRPs)
Long-term energy supply plans with 15–20 year forecasts. Utilities must demonstrate how they will meet future demand reliably and affordably.
Siting Certificates
Approval for building new energy facilities — power plants, solar farms, wind projects, and transmission lines. Requires a certificate of necessity from the Commission.
Consumer Complaints
Informal complaints are handled through mediation by the Customer Assistance Division. Formal complaints are contested cases heard before an ALJ.
Rulemakings
Proceedings to adopt or amend administrative rules governing utility operations, safety standards, and regulatory procedures.
Telecommunications
Provider disputes, licensing, service quality, and video franchise administration. Does not include cellular, broadband, or internet services.
Understanding who does what in MPSC proceedings is essential. Several of these distinctions are frequently confused by the public.
The Commission
3 Commissioners
The three Commissioners make final decisions by majority vote. They are not involved in the evidentiary process — they do not preside over hearings or question witnesses. They rule on the written record after the ALJ issues a Proposal for Decision. The Governor appoints all three; no more than two may belong to the same political party.
Commission Staff
A party to proceedings, not a neutral arbiter
This distinction is frequently misunderstood. Commission Staff participates as a party in proceedings — staff files testimony, takes positions on contested issues, cross-examines other parties’ witnesses, and files briefs. Staff makes recommendations based on professional analysis, but those recommendations are not binding and sometimes diverge from the Commission’s final orders. Staff is represented in proceedings by the Attorney General’s office.
Attorney General’s Office
Dual role with inherent tension
The AG’s Public Service Division has two distinct functions: (1) it serves as legal counsel to the MPSC, representing the Commission and Staff in court and before federal agencies, and (2) it separately intervenes in rate cases as an advocate for ratepayer interests, often taking positions that differ from Staff’s recommendations. These functions are handled by different attorneys within the same division, but the structural tension is real. Since 2019, the AG’s office claims to have helped save Michigan consumers over $4.1 billion by intervening in utility cases.
Intervenors
Anyone with a substantial interest
Any person or entity with a substantial interest in a proceeding can petition to intervene and become a formal party. Common intervenors include environmental organizations (Sierra Club, clean energy groups), industrial and commercial customer groups, municipalities, competitive energy suppliers, and the Citizens Utility Board of Michigan (CUB). Intervenors may file testimony, cross-examine witnesses, and file briefs.
Administrative Law Judges (ALJs)
From MOAHR — recommend, but do not decide
ALJs come from the Michigan Office of Administrative Hearings and Rules (MOAHR), a separate office within LARA. They preside over evidentiary hearings, manage discovery disputes, and issue Proposals for Decision. However, ALJs do not make final decisions — only the three Commissioners do. The Commission can adopt, modify, or entirely reject an ALJ’s recommendation.
Anyone can file a public comment on a case without becoming a formal party. Public comments are part of the record but do not carry the same weight as sworn testimony from intervenors.
The MPSC has approximately 200 staff across nine divisions, with professionals in engineering, law, economics, finance, and accounting.
Regulated Energy Division
Accounting, audits, financial statistics, rate case analysis, tariff administration, and annual utility assessments.
Energy Operations Division
Electric reliability standards, service quality, distribution system planning, emergency management, and fuel cost recovery reconciliations.
Energy Resources Division
Integrated resource plans, renewable energy standards, energy waste reduction, customer choice programs, and resource adequacy.
Gas Safety & Operations Division
Pipeline safety inspections, underground storage safety, gas technical standards, and pipeline siting. Exercises authority delegated by federal PHMSA.
Telecommunications Division
Telecom regulation, video franchise administration, provider dispute resolution, and annual video services reporting to the Legislature.
Regulatory Affairs Division
Drafting Commission orders and administrative rules, maintaining official dockets and case files, and providing legal guidance.
Strategic Operations Division
Communications, stakeholder engagement, case management strategy, energy legislation implementation, and federal coordination (FERC, MISO).
Customer Assistance Division
Consumer inquiries and complaints, energy assistance programs (MEAP), and consumer education on utility issues.
Administrative Services
Human resources, information technology, website administration, and facilities management.
The formal mechanics of Commission decision-making.
- Quorum: Two of three Commissioners must be present to conduct business.
- Majority vote: Decisions are made by majority vote at public meetings. A single Commissioner can dissent.
- Open meetings: Commission meetings are open to the public. Meeting schedules and agendas are published in advance.
- Ex parte rules: Commissioners cannot discuss the merits of pending cases with parties outside of formal proceedings. This protects the integrity of the record-based decision-making process.
- Written orders: All decisions are issued as written orders filed in the E-Dockets system. Orders include the Commission's reasoning, findings of fact, and conclusions of law.
- Appeals: Parties may appeal Commission orders to the Michigan Court of Appeals.
Related Pages
Disclaimer: Open MPSC is an unofficial, independent project. It is not affiliated with the Michigan Public Service Commission or the State of Michigan. Information on this page is compiled from public sources for educational purposes. For official records, visit michigan.gov/mpsc.