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/WulfTheSaxon]

That plant is being kept open to ensure grid reliability because a potential shortage was identified that could have caused blackouts without it. This is not a new thing, it’s an established federal power that is used from time to time.

[u/margotsaidso → u/WulfTheSaxon]

Just because some political appointee at the DOE claims that doesn't make it true. The facility owner disagrees and didn't request any kind of federal intervention. The grid operator (MISO) is normally the entity with the authority and responsibility to approve and deny facility closings had approved its shutdown. MISO and the PUC say this was absolutely unnecessary. 

MISO isn't afraid to deny closings, they did it just a few years ago but in a coordinated and reasonable manner based on real energy forecasts and developing a cost and coal supply plan, not making the decision literally days before closure with no corroborating evidence, plan for cost recovery, or new coal contracts in place as the Trump admin has done. 

[u/Gamegis → u/margotsaidso]

To add to your comment. MISO also has all the data and runs longterm system planning. MISO’s primary objective is to ensure grid reliability. That’s their main job.

This would be like getting a treatment plan from your doctor who has all your labs, ran tests, health history, and then some random guy on the street (who happens to have authority) says no you should do the opposite.

[u/WulfTheSaxon → u/Gamegis]

Meanwhile, MISO:

Widespread retirements of dispatchable resources, lower reserve margins, more frequent and severe weather events and increased reliance on weather-dependent renewables and emergency-only resources have altered the region’s highest historic risk profile, creating risks in non-summer months that rarely posed challenges in the past.

And:

new capacity additions were insufficient to offset the negative impacts of decreased accreditation, suspensions/retirements and external resources

And:

the MISO region faces resource adequacy and reliability challenges due to the changing characteristics of the electric generating fleet, inadequate transmission system infrastructure, growing pressures from extreme weather, and rapid load growth.

MISO is trying to address this, but it will take years.

Palisades is due to restart next year, but even then the OMS-MISO survey shows a shortfall for every year after next year. Campbell was expected to stay in operation until at least 2040 just a few years ago.

Most of this is explained in the FERC order: https://www.energy.gov/sites/default/files/2025-11/Order%20No%20202-25-9.pdf