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Mich. may raise residents' electric bills to help businesses

Associated Press

LANSING, Mich. (AP) - State lawmakers plan to raise residential electric bills by as much as 15 percent so businesses and schools can pay less.

Prices historically have been "skewed" by state regulators so residents pay less than the actual cost of electricity, while businesses pay more.

Legislators acknowledge residential customers would experience some sticker shock, but many no longer want to force business customers to subsidize residential rates. They think Michigan's business rates - which traditionally run higher than surrounding states - discourage companies from locating here.

Legislation already has passed the House and is being considered in the Senate.