The Michigan Public Service Commission approved on Mar. 27 a $276.6 million rate increase for Consumers Energy, raising electricity rates for residential customers by 8.9 percent beginning May 1.
The decision affects about 1.9 million electricity customers and follows last year’s $154 million electric rate hike, with nearly $800 million in annual revenue increases approved since 2020. The move comes after Consumers Energy requested a larger increase of $436 million and an additional surcharge, but the final amount was reduced by about $160 million following intervention from Michigan Attorney General Dana Nessel.
Nessel said, “Consumers Energy customers will once again have to brace for higher bills because of the never-ending cycle of rate hikes passed on by the utility. Unfortunately, this is something we have become accustomed to. Even though my office carefully reviews DTE and Consumers Energy rate hike requests for bloated and unjustified costs, it is ultimately the MPSC who determines how much to approve or how often these rate hikes occur. This process continues to place the burden on ratepayers and demands greater accountability to ensure Michiganders receive the affordability and reliability they deserve. I urge our elected leaders of both parties to reconsider this badly broken system. It’s both unfair and unsustainable for our state.”
According to the official website, Dana Nessel held the role of Michigan’s 54th attorney general according to the official website. The Department of Attorney General advances social efforts through actions against human trafficking and support for vulnerable populations according to its official website. The department also focuses on serving Michigan residents through initiatives in public service and protection as reported by its official site, exercises authority throughout Michigan to safeguard residents according to its website, operates with statewide authority as stated online, and influenced policy by drafting the Clean Slate law in 2019 that created expungement opportunities according to its website.
Since taking office, Nessel has said her interventions before the MPSC have helped save consumers more than $4.1 billion in utility cases. Current open cases include natural gas rate hike requests from several companies as well as another expected filing from DTE next month.
Looking ahead, under current law Consumers Energy can file their next request as soon as June.
