Consumers Energy hiking electric rates by $153 million annually | Business

LANSING, Mich. (WJRT) – The Michigan Public Service Commission approved a new electric rate hike for Consumers Energy, allowing the company to collect an additional $153 million from ratepayers.

This approval was 53% lower than Consumers Energy’s original request of $325 million. Michigan Attorney General Dana Nessel says her office played a significant role in reducing the proposed hike.

“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,” Nessel said.

Consumers Energy filed documents seeking the electric rate increase in May 2024. It included requests for a $303 million rate increase and an additional $22 million through a monthly surcharge increase starting March 2025.

The MPSC-approved hike results in a 2.8% rate increase for residential electric customers, compared to the originally proposed 8.2% increase.

“Consumers Energy and DTE keep coming back to the trough, and over and over again Michiganders are forced to pay higher and higher bills just to keep the lights on,” Nessel said.

Consumers Energy is planning to beef up its annual spending on clearing trees from around power lines with part of the revenue increase. The company is planning to clear trees along 8,000 miles of power lines.

The work is designed to prevent power outages and reduce how long they last.

“We want our neighbors to know we will be working every day to make our system more reliable and more resilient to keep the lights on, even after the worst storms,” said Greg Salisbury, Consumers Energy’s vice president of electric grid design.

Consumers Energy also is planning to make more proactive investments in electric grid maintenance and new technology to respond more quickly to power outages.

“We know our customers are counting on us to deliver energy more reliably. Today’s plan approval gives us more resources to do important work that affects people directly,” said Chris Laird, Consumers Energy’s vice president of electric operations.

In January, the MPSC also approved a rate hike for DTE, allowing them to charge an additional $217 million annually. Nessel’s efforts succeeded in reducing that increase by half.

Nessel said DTE has informed her office of an impending application for another electric rate increase likely coming in February. Consumers Energy has a separate rate increase request for natural gas customers pending before the MPSC.

The MPSC must approve both applications before the utilities will be allowed to charge any higher rates. The Michigan Attorney General’s Office argues against rate increases for the state’s utility monopolies before the MPSC.

“Fighting these constant rate hikes is unending, year-round work in my office, and we’ll continue to stand on guard for Michigan utility customers,” Nessel said.

Consumers Energy serves 6.8 million customers with electricity and natural gas in 68 counties across Michigan’s Lower Peninsula.