Michigan Attorney General’s Anti-Trust Lawsuit Against Fossil Fuel Companies is Ridiculous and Based on Inaccurate Information

     I am often baffled about how uneducated and misinformed people are about energy and power. Michigan Attorney General Dana Nessel recently filed an antitrust lawsuit against fossil fuel companies. This suit is a bit different than previous suits, which cited environmental and/or climate impacts. This one is titled, Michigan Energy Affordability Complaint. Defendants in the suit include BP, Chevron, Exxon Mobil, Shell, and the American Petroleum Institute.

"Through this Action, the State seeks to end and obtain appropriate redress for injuries caused by a conspiracy to delay the transition from fossil fuels to renewable energy," the second sentence of the suit read, citing several antitrust statutes.

     She argues that renewable energy is more affordable than fossil fuels. If it were, there would be a lot more of it, and it would not need to be heavily subsidized. It is also not in any way equivalent to fossil fuel energy. It is often not available, especially in the winter.  It would take extensive storage, integration, and added transmission to make it an equivalent energy product to that delivered by fossil fuels. This makes it immensely more expensive than fossil fuels. The argument is absurd. While it is true that it is often the cheapest form of electricity when it is available, it is often, in fact, very often, unavailable or at reduced availability. The simple proof that it is more expensive than fossil fuels is that where it is most prevalent, electricity prices are higher. This is true across the board. Its economic advantage over fossil fuels is that there is no need to buy fuel. Fuel costs also stretch financing out for fossil fuel plants since they pay for the fuel through the life of the plant. However, the upfront costs per unit of wind and solar energy are much higher. She uses the levelized cost of electricity (LCOE) for her argument. Thus, it is only the actual electricity that is cheaper. The limited availability means that it must have backup power available at all times. Fuel costs also stretch financing out for fossil fuel plants since they pay for the fuel through the life of the plant.

     I am annoyed about having to hear this totally flawed argument over and over. I heard Rahm Emmanuel say the same thing a few months back and was shocked. I thought he would have been better informed. It is embarrassing, and when liberals make the argument, it makes them look uninformed and uneducated. We need energy-smart liberals and conservatives.

     According to The Cool Down:  

“Michigan was among the states hit hardest by rising energy costs, which "could have been prevented had the fossil fuel cartel not worked together to postpone innovation and to eliminate cost-effective alternatives," Nessel said.  

     So, I think she is faulting Big Oil companies for delaying a renewable energy revolution. Oddly, those same Big Oil companies are big investors in renewable energy, as well as being responsible for developing some of those technologies. They have been slowing that investment in those projects for one simple reason: they are much less profitable than fossil fuel projects. This is another incontrovertible proof that fossil fuels are cheaper, overall.

     Of course, one day that may not be the case as technologies improve and get cheaper. That time is not yet, and certainly not now.

“…the suit claimed, the defendants suppressed internal research and "commercially viable prototypes, and used "capture-and-kill tactics and aggressive patent litigation to restrain rivals from making progress with renewable energy."

     I’m not sure what she is referring to there, but right before that, she was talking about what Exxon supposedly knew beginning in 1980, nearly half a century ago. That is irrelevant now, and many of those people are no longer around. The suit also demands a jury trial. The lawsuit, in my opinion, is a clear waste of taxpayers’ money and should be abandoned. Hopefully, I won’t have to hear any more about it in the news.  

    

  

References:

 

Official slams major industry with lawsuit over 'cartel'-like scheme to take down rival: 'Capture-and-kill tactics'. Kim LaCapria. The Cool Down. January 26, 2026. Official slams major industry with lawsuit over 'cartel'-like scheme to take down rival: 'Capture-and-kill tactics'