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John James urges more electricity competition in Michigan
Estimated reading time: 4 minutes · Last updated:
John James, the Republican nominee for Michigan governor and a U.S. representative from Shelby Township, wants to lift the state’s 10% customer-choice cap to 30% and pin bill growth at or below inflation to reduce household energy costs. He announced the plan during a virtual press conference on 16 September 2026, as first reported by The Detroit News. The proposal also calls for replacing the three members of the Michigan Public Service Commission and for measures to prevent data centers from driving up residential rates. James says increasing customer choice and changing the commission are the core tools to lower bills.
The best way to do that is to lower rates, is to increase relief, is to focus on the commission, is to focus on choice and is to make sure that data centers don't jack up those rates,
John James
Key takeaways
- Proposal: John James proposed raising Michigan's customer-choice cap from 10% to 30% on 16 September 2026.
- Current law: Under a 2008 Michigan law, only customers amounting to up to 10% of a dominant utility's annual sales may be served by alternative suppliers.
- Who uses choice: A February report from the Michigan Public Service Commission found that the majority of participants in choice programs are industrial customers.
- Political move: James said on 16 September 2026 he will replace the three current MPSC commissioners when their terms end.
Table of contents
What James is proposing and why
James wants to expand Michigan electricity competition by raising the cap on customers eligible for alternative suppliers from 10% to 30%. He frames the change as a way to lower rates and increase consumer choice, and he has linked the proposal to a pledge to hold bill growth at or below the rate of inflation.
At a virtual press conference on 16 September 2026, James put the commission and data-center demand at the centre of his plan. He argued that swapping commissioners and opening more customers to choice will produce relief for residents who report rising bills.
The campaign message targets affordability and the regulatory structure that governs utilities; for James, the mechanism is regulatory opening plus new commissioners who will prioritise ratepayers.
How Michigan’s customer-choice cap works and who uses it
Michigan’s 2008 law limits alternative suppliers to serving customers that total no more than 10% of a dominant utility’s annual sales. The cap is applied at the utility level and constrains how much load can shift from incumbent suppliers such as DTE Energy and Consumers Energy.
The Michigan Public Service Commission reported in February that most participants in the existing choice programs are industrial customers rather than residential users, which means a lift of the cap to 30% would change the balance of who can seek alternative supply and how utilities plan their systems.
Utilities and allied groups have long opposed larger choice limits, citing reliability and price risks. Past utility-backed advertising referenced deregulation episodes in California and Texas to argue that wider choice can produce blackouts or steep bills — points utilities use when lobbying state lawmakers.
Political and regulatory implications
James also pledged to replace the three current MPSC commissioners when their terms end. He said, "We are going to, systematically, according to the law, replace these individuals immediately with folks who are going to be protecting ratepayers." The three commissioners were appointed by Governor Gretchen Whitmer.
The pledge makes the cap proposal a broader regulatory reset: changing who sits on the commission can affect rate-setting, grid planning and how aggressively the agency weighs reliability against competition. Michigan’s January analysis found residential electricity rate hikes over two decades outpaced inflation and rose by higher percentages than in 46 other states, a context both sides use to frame the debate.
Democratic nominee Jocelyn Benson has countered with a promise to declare an electricity cost freeze on her first day if elected, making energy policy a clear election issue heading into 3 November 2026.
How the proposal could play out
The case for
- If more commercial and residential customers can choose suppliers, competitive pressure could lower prices for some segments of the market.
- Replacing commissioners aligned with the proposal could speed regulatory approval for expanded choice and accompanying rules to protect ratepayers.
The case against
- Utilities and their allies argue that rapid expansion of choice risks reliability problems and price spikes, citing deregulation episodes in other states.
- Even with a governor and legislature willing to act, statutory limits and utility opposition could slow or block a move from 10% to 30%.
What to be careful about
- Regulatory pushback and legal challenges from dominant utilities that could delay implementation.
- Potential reliability or price volatility concerns cited by utilities based on past deregulation cases in other states.
- The existing use of the cap by primarily industrial customers means expanding it could shift costs or planning obligations in unforeseen ways.
The bottom line
John James’s proposal to raise Michigan’s 10% choice cap to 30% and to replace MPSC commissioners turns a technical regulatory limit into a central campaign pledge. The move pairs a statutory change with a personnel strategy: expand who can buy power from alternative suppliers and install commissioners who back that expansion. Utilities warn of risks tied to past deregulation examples, and Democrats have countered with their own promises to shield consumers. The immediate trigger is the 3 November 2026 election; implementation would depend on post-election politics, statutory steps and agency decisions.
What to watch
- Watch the 3 November 2026 general election to see whether the gubernatorial outcome shifts momentum for James's competition agenda.
- Watch for notices or filings about MPSC commissioners' term expirations; no date has been set for their replacement.
- Watch whether either campaign files formal legislative or regulatory proposals after the election; no specific filing date has been announced.
Frequently asked questions
What is Michigan’s current customer-choice cap?
Under a 2008 Michigan law the cap is 10%: alternative suppliers may serve customers that together amount to up to 10% of a dominant utility's annual sales.
What change is John James proposing?
James proposes increasing the cap to 30% and holding bill growth at or below the rate of inflation; he announced the plan on 16 September 2026 and also said he would replace the three MPSC commissioners when their terms end.
Who are the main utilities affected?
The proposal would principally affect dominant utilities including Detroit-based DTE Energy and Jackson-based Consumers Energy, which have historically opposed raising the cap.
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