At its meeting, the Michigan Public Service Commission (Commission) issued a final order in Consumers Energy Company’s most recent rate case, Case No. U-21389, approving an electric rate that is less than half of what the company requested. Michigan Attorney General Dana Nessel intervened in the case, arguing the requested increase was too much.
The Commission approved a $92,009,000 annual increase in the Company’s electric rates. Consumers Energy originally requested a $216 million increase in electric rates in its May 2023 application. The Commission’s decision today represents an approximately $124 million (or 57.4%) reduction from the Company’s requested rate increase. For the typical residential customer, this will represent an increase of approximately 1.61%, or $1.53 cents per month when new rates go into effect on or after March 15, 2024. The original filed request from Consumers Energy would have amounted to an overall 4.7% rate increase, with a 3.3% increase for residential customers.
Attorney General Dana Nessel intervened in the case on behalf of customers, provided testimony, and argued that Consumers Energy would only have a revenue deficiency of approximately $56.95 million and that in many ways the amount of the Company’s requested increase was excessive and not supported on the record. The Attorney General argued against many of Consumers Energy Company’s projections and expenses as unreasonable and not providing commensurate customer benefit. The final order relies on some of those arguments made by the Attorney General.
"Our corporate utility providers are required to request permission from the Michigan Public Service Commission to increase the rates they charge, and this gives my office an opportunity to scrutinize their often-exaggerated claims and hold them publicly accountable to the people’s needs for reliable and affordable home energy,” said Nessel. “Today the Commission saw fit to slash Consumers Energy’s requested rate hike by more than half. My department will continue to advocate for Michigan consumers at every opportunity, and we will intervene to defend ratepayers as appropriate based on our careful study of these corporate filings and consultation with industry experts.”
Consumers Energy Company, a subsidiary of CMS Energy, is headquartered in Jackson and serves approximately 1.9 million retail electric customers in the lower peninsula of Michigan.
Since taking office, Attorney General Nessel has helped save utility customers over $3 billion.
Original source can be found here.