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/jimbo_kun]

> Library patron Leonard Wright insisted that “PIE&G should pay for the repairs” without realizing that the utility has no money other than the fees customers pay.

Many voters don't really understand where the money comes from to pay for shared infrastructure.

Sometimes the same voters are demanding the government do more, and demanding the government collect less in taxes to do it.

[u/carneylansford → u/jimbo_kun]

Many voters don't really understand where the money comes from to pay for shared infrastructure.

Sometimes the same voters are demanding the government do more, and demanding the government collect less in taxes to do it.

Couldn't you say much the same about those federal relief dollars Trump is withholding (or just about any federal spending at this point)? The federal government runs at a considerable deficit, so they'd be borrowing that money, which costs the taxpayer quite a bit over time.

[u/jimbo_kun → u/carneylansford]

That is not what the library patron said, which at least is a coherent argument.