Consumers Energy is asking Michigan regulators for another $456 million electric rate increase, only months after the state approved a $276.6 million hike for the utility. The request would add to a long run of approved increases that have already pushed Consumers Energy’s rate approvals since 2020 to nearly $800 million.
The filing comes as the company says it needs more money to improve reliability for its 1.9 million electric customers and 1.8 million natural gas customers across Michigan. Consumers Energy says the added revenue would help reduce outages and support system upgrades, while opponents argue the request adds more pressure on households already dealing with high utility bills.
What Consumers Energy is asking for
The utility is seeking a 9.8% increase in residential electric rates, along with several extra charges. Those include a 12-month surcharge of $25 million, another $52 million over three years for storm restoration costs, and the continuation and expansion of the Investment Recovery Mechanism approved in its last rate case.
Consumers Energy said in its filing that the goal is to deliver “fewer and shorter power outages for customers.” The company also argued that “without these investments, the desired improvements in reliability cannot occur,” framing the proposal as necessary to maintain and improve service.
Pushback from state officials
Michigan Attorney General Dana Nessel said her office plans to intervene in the case. She said the request includes “completely unsupported, inflated costs,” and criticized what she described as a pattern of repeated rate demands from major utilities.
“Consumers Energy and DTE keep demanding more and more money, the MPSC continues to reward their incessant demands, and the cycle of constant, growing rate hikes are pushing Michigan families and businesses to the brink,” Nessel said in a news release. She added that “Michiganders are facing an affordability crisis, and our utility companies are recording record profits.”
A broader wave of utility cases
Consumers Energy’s request is part of a larger set of active cases before the Michigan Public Service Commission. Other open requests include Consumers Energy’s natural gas rate hike case, DTE’s natural gas and electric rate hike requests, SEMCO Energy Gas Company’s natural gas request, and Upper Peninsula Power Company’s electric request.
The latest filing adds to a regulatory trend that has already seen significant increases for Consumers Energy in recent years. For customers, the next round of commission review will help determine whether the company’s reliability claims outweigh concerns about the size and pace of the proposed increase.
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