Yesterday, Michigan Attorney General Dana Nessel submitted testimony to the Michigan Public Service Commission (MPSC) opposing Consumers Energy Company's requested $248 million hike in natural gas rates. Nessel contends that the proposed rate increase should be reduced by almost 70%.
Consumers Energy is seeking authorization to charge its customers an extra $248 million annually, which translates to a 12% increase in residential rates. The company is also asking for an increase in the profit percentage on some expenses, which would boost shareholder returns at the expense of customers. Furthermore, Consumers Energy proposes a 33% hike in residential and small commercial monthly charges after recently securing a 10% and 13% increase in these areas, respectively.
Attorney General Nessel advocated for reducing the rate hike to $76.5 million. This proposal would result in a 3.5% overall increase for ratepayers and a 3.7% increase for residential ratepayers.
"As we've seen time and again, Consumers Energy and DTE continue to prioritize padded profits over serving the needs of their customers in every rate hike request," said Nessel. "In this case, our review found that about 70% of Consumers Energy's proposed rate hike is unjustified. Once again, they are attempting to inflate their request by including unwarranted expenses to boost their bottom line and profitability, all on the backs of the Michigan ratepayers trapped in their monopoly. While I applaud my team for uncovering these excessive costs, more must be done to break the cycle of these endless rate hikes, and to tell Consumers Energy and DTE their annual attempts to pass crooked costs onto our residents are unacceptable."
Since assuming office, Nessel has advocated on behalf of Michigan consumers, reportedly saving them over $3.7 billion in various utility cases. Her recent testimony further illustrates her dedication to ensuring affordable energy for consumers. Other notable cases pending before the MPSC include DTE’s forthcoming electric rate hike (U-21860) and Consumers Energy’s announced electric rate increase.
Consumers Energy provides natural gas to approximately 1.8 million customers across Michigan.