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Attorney General Nessel challenges Consumers Energy's proposed $248 million gas rate increase

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Friday, December 20, 2024

Attorney General Nessel challenges Consumers Energy's proposed $248 million gas rate increase

State AG
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Attorney General Dana Nessel | Official website

Michigan Attorney General Dana Nessel has announced her intervention in the latest rate case filed by Consumers Energy with the Michigan Public Service Commission (MPSC). The energy company is seeking approval for a $248 million annual increase in its gas rates, which would result in a 12% rise for residential customers. This request follows a previous $35 million rate hike granted just five months ago.

Attorney General Nessel has stated her intention to scrutinize this request as she does with all utility rate increase proposals submitted to the MPSC. Her office aims to ensure that any additional costs imposed on consumers are justified by tangible benefits. In an earlier case this year, Nessel's intervention led to a significant reduction of nearly 75% in Consumers Energy's proposed natural gas rate hike. Her testimony highlighted that many of the expenses intended to be covered by the hike were not adequately justified or beneficial to ratepayers.

"Consumers Energy is seeking to hike gas rates yet again, only five months after their last rate hike was approved by the MPSC," said Nessel. "My office will carefully review this request to ensure Consumers Energy is not once again attempting to fatten their rate hike by including expenses they cannot justify to the MPSC, like they did last time when we worked to slash their rate hike by 75%. We will continue to work to hold the utilities accountable and keep unjustified costs off ratepayers’ bills."

Nessel's efforts have reportedly saved Michigan consumers over $3.4 billion through interventions in utility cases before the MPSC. Consumers Energy provides electricity services to approximately 1.9 million customers and natural gas services to about 1.8 million customers across Michigan.

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