Michigan Attorney General Dana Nessel has filed testimony in Consumers Energy’s latest electric rate hike case, recommending a significant reduction of over 70%. The move could lead to substantial savings for ratepayers across the state. Consumers Energy had initially requested an average rate increase of 6.5%, with an 8.2% rise for residential customers, aiming to generate more than $300 million in revenue.
This request follows a $92 million electric rate hike approved by the Michigan Public Service Commission (MPSC) six months ago. Additionally, Consumers Energy seeks to impose a separate 12-month customer surcharge of $21.8 million for certain deferred costs starting in March 2025.
Attorney General Nessel urged the MPSC to limit the allowed rate hike to less than 2%, permitting the energy corporation and its shareholders to raise only an additional $82.9 million from Michigan customers' bills. This would represent a more than 70% cut from the current request.
“My office carefully scrutinizes every rate hike before the Michigan Public Service Commission because consumer protection remains one of my top priorities,” Nessel stated. “Michigan utility customers are already subjected to some of the nation’s highest electric rates, lowest standards of reliability and service, and utility partners who only ever ask for more and more from increasingly dissatisfied customers. As we have seen time and again, these utilities prioritize corporate profits over customer needs and improvements. This case is no exception. Our review reveals that 70% of Consumers Energy’s requested rate increase is excessive and unjustified.”
Consumers Energy Company, a subsidiary of CMS Energy headquartered in Jackson, serves approximately 1.9 million electric customers across Michigan’s lower peninsula. Despite years of rate increases for capital expenditures, a recent third-party audit commissioned by the MPSC indicates that both Consumers Energy and DTE Energy have shown below-average outage and reliability performance due to decades of neglect and imprudent investment strategies.
A copy of the Department’s testimony is available on the MPSC’s website.
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