The Michigan Public Service Commission (MPSC) has sanctioned a new electric rate hike for Consumers Energy, enabling the company to gather an additional $153.8 million from its customers. This approved increase is notably 53% less than the initial request of $325 million made by Consumers Energy. The reduction is attributed partly to the efforts of Michigan Attorney General Dana Nessel, who actively advocates for utility customers in such cases.
Attorney General Nessel expressed concern over the frequency of these hikes, stating, "Only 12 months since their last rate hike was approved, Consumers Energy customers are facing yet another rate hike in what has become a never-ending cycle." She added that her office would continue its efforts to mitigate these increases and protect Michigan's utility consumers.
Consumers Energy initiated this request in May 2024, aiming to collect $303 million more from its existing electric rates and an additional $22 million through a customer surcharge set to begin in March 2025. The original proposal could have increased electricity rates by 8.2% for residential users. However, after reviewing testimony from Attorney General Nessel advocating for no more than an $82.9 million increase (or approximately 1.8%), the MPSC settled on a 2.8% rise for residential customers.
In January, DTE also received approval for a rate hike amounting to an extra $217 million annually after Attorney General Nessel managed to reduce their proposed increase by half. DTE plans to submit another request next month.
According to regulations, utility companies are permitted to file requests for rate increases once every year. Consumers Energy filed this latest request just three months following their previous approval by the commission last year. Alongside this case, they have pending natural gas rate hike requests with the commission.
Attorney General Nessel's interventions have reportedly saved Michigan consumers nearly $3.7 billion in various utility cases before the MPSC. Consumers Energy provides electricity services to around 1.9 million and natural gas services to about 1.8 million customers across Michigan.