Michigan's governor replaces clean energy advocate on utilities board with ‘industry ally'

The Guardian

2 days ago

Michigan's governor, Gretchen Whitmer, has effectively ousted a clean energy advocate from serving on a board that regulates the state's energy utilities monopoly, and replaced her with someone who environmental groups charge is an 'industry ally', campaigners say.
The groups allege the move was made at utility giant DTE Energy's behest because it was unhappy with Michigan public services commission (MPSC) board member Alessandra Carreon's position on clean energy and opposition to rate increases, among other issues.
Each MPSC board vote is important because the commission is made up of three gubernatorial appointees, and Whitmer's decision amid a debate over rate increases could slow the state's ambitious clean energy transition and lead to higher energy bills, opponents warn.
The decision marks the latest in a series of environmental controversies for Whitmer, a Democrat whose name has been discussed as a potential leading candidate for the party's nominee for president in 2028, but now faces increasing scrutiny over her record.
Appointing someone with industry ties to a board that is supposed to protect the public from utility wrongdoing 'reflects incredibly poorly on Governor Whitmer', said Chris Gilmer-Hill, policy associate with the Michigan Environmental Justice Coalition non-profit.
'This is part of this pattern of this administration being very quick to give utilities what they want and not giving Michiganders what they need,' Gilmer-Hill added.
Whitmer appointed Carreon to the MPSC board in July 2023 to fill a partial term. Among other causes, Carreon was an advocate for greater public involvement in and transparency around the arcane regulatory process for utilities at a time when public frustration over DTE's poor service and high rates has steadily mounted.
In a highly unusual move, the governor announced in June that she would not renew Carreon's appointment. Environmental groups in June lambasted the decision, which they alleged came amid pressure from DTE and Consumers Energy, Michigan's second largest utility monopoly.
'My understanding is that DTE and Consumers were very unhappy with recent decisions the commission has made around the utilities' profit margin,' Charlotte Jameson, chief policy officer of the Michigan Environmental Council, told the Detroit News at the time.
Many of the state's top environmental groups signed an 18 June letter to Whitmer that stated they were 'deeply concerned' with the decision not to renew Carreon's appointment and potentially replace her with someone who has 'clear conflicts of interest or strong industry allegiances'. They urged the governor to reconsider.
Whitmer did not. In mid-July, she appointed Shaquila Myers, who, during the 2023-2024 legislative session, was chief of staff for former Michigan House speaker Joe Tate, a pro-business Democrat. He faced a stunning revolt from his own party in December because he generally refused to allow votes on legislation opposed by big business, and was seen by many as hostile towards environmental causes.
Despite a chorus of calls for change, Tate did not allow multiple utility reform bills to move through the legislature.
'There was a quiet, steady refusal to do anything but ignore [utility] bills,' said Rachel Hood, a former Democratic state representative who served with Tate last session, and has worked on energy policy in Michigan for nearly 20 years.
Hood characterized Myers as 'not just an industry ally', but also 'deeply enmeshed in the governor's policy agenda'.
'And it's clear that the governor is pushing DTE's agenda to the best of her ability,' Hood said.
DTE and Consumers are among the state's powerful political forces. The former, either via the company, its employees or its affiliated dark money non-profit, has given millions of dollars in campaign donations to Whitmer or the state Democratic party over her two terms.
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Meanwhile, a 2022 analysis found DTE had donated to all but 10 of 148 state legislators the previous session. Amid furor over prolonged power outages that left hundreds of thousands of people in Michigan without power for days in late 2023, DTE's affiliated dark money non-profit gave Tate $100,000. Tate would not let a 2023 reform bill aimed at improving accountability and affordability be introduced in committee.
'This is Michigan's powerful political entities acting to maintain their way of life and their balance sheets,' said Hood.
Meanwhile, Tate and Whitmer ushered through a datacenter bill that may derail Michigan's climate goals.
Whitmer's office did not comment, but a Whitmer spokesperson sent statements on behalf of DTE and Consumers. The utilities separately sent their own statements in which they both denied involvement in the process.
In its statement, a DTE spokesperson said: 'Our team at DTE works collaboratively with the MPSC commissioners and staff to ensure we're providing safe, reliable, cleaner and affordable energy to our customers and the state of Michigan.'
The move comes at a particularly critical juncture. The MPSC is weighing over $1bn in proposed rate increases between the two companies, and each are slated to deliver to the MPSC formal long-term plans for delivering power. Commissioners have the power to shape those proposals with decisions about billions of dollars in infrastructure.
The MPSC has not allowed a DTE proposal to build a methane plant, and advocates fear that decision could be reversed with Myers on the board, Gilmer-Hill said.
Meanwhile, the utilities are negotiating datacenter deals that could result in dramatic cost increases to customers and take a toll on the environment if they are not checked by the MPSC, Gilmer-Hill added.
'We need an MPSC that's willing to say no to the utilities, otherwise we mess things up for decades,' Gilmer-Hill said.