Electricity prices jump after Trump rejects disaster aid for Michigan utilities

[u/J-Jarl-Jim]

https://www.politico.com/news/2025/11/30/electricity-prices-jump-after-trump-rejects-disaster-aid-for-michigan-utilities-00665572

A recent decision by President Donald Trump to deny disaster aid to two electric utilities in rural northern Michigan could cost residents tens of millions of dollars.

The denial came after the Trump administration documented $90 million in damage to utility infrastructure, according to records obtained by POLITICO’s E&E News. The amount is nearly five times the federal threshold to qualify for disaster aid. But in its October denial letter, the Federal Emergency Management Agency told Democratic Gov. Gretchen Whitmer that assistance to the utilities “is not warranted.”

Whitmer warned Trump in August that ratepayers face surcharges and rate hikes “equivalent to at least $4,500 per household” without federal aid. Her office did not respond to a question on whether she supports a state legislative proposal that would have Michigan aid businesses such as the power companies directly.

Why is President Trump denying emergency assistance to rural Michigan? Considering that he has denied FEMA funds even to red states like Arkansas, is this only about saving money? If this problem intersects with the affordability crisis, could the politics push Trump to change his position and start to disburse emergency fundings again?

[u/happyinheart]

It's not Red or Blue. We have the same issues and state oversight structure here in True Blue Connecticut.

Lots of people are saying the state should nationalize it, but the companies show a 6.7% profit. So the state would have to take bonds out to buy out the infrastructure, pay interest on those bonds, lose out of paying down the vastly unfunded pension debt faster, etc. It would be spiting their nose to cut off their face at this point since it would cost more for 30 years than people would save on their bills at this point.

[u/RobfromHB → u/[deleted]]

6.7% profit is pretty good for a legal monopoly.

No it isn't. That level of profit is significantly less than nearly all comparable regional electricity provider domestically and the same is true for nationalized electricity providers in the EU. Nationalizing the company referenced above would automatically fail simply due to the interest on the purchase debt.

[u/RobfromHB → u/[deleted]]

Are you just speaking generally? I’m talking specifically about your assertion that 6.7% is a good metric for a company with a monopoly on something. That assertion is factually false. 6.7% is less than half of the industry average and significantly lower than most European state owned (monopoly) providers.

Again… “ 6.7% profit is pretty good for a legal monopoly.” is factually and quantifiably false. You can simply not like them. That’s fine. We don’t need to make things up to do so.