$154M Consumers Energy electricity rate hike approved by Michigan Public Service Commission
(Photo by Gerd Altmann from Pixabay)
LANSING, Mich. (FOX 2) - Residents living in Consumers Energy's electricity service area will soon see their bills increase after the Michigan Public Service Commission (MPSC) approved a rate hike of nearly $154 million.
The approved increase was down about 52% from what Consumers requested. According to MPSC, last spring Consumers requested a $325 million increase that included $303 million through rates and $22 million from a 12-month surcharge.
Why you should care:
Consumers provides electric service to much of lower Michigan outside of the east side of the state, including the Grand Rapids area. Metro Detroit does not fall into Consumers' electricity footprint; that area falls under DTE, which also recently had a rate increase approved.
The area that Consumers Energy provides electricity to. (Photo: MPSC)
According to the MPSC, Consumers customers who use 500 kWh a month can expect to see their monthly bills increase by around $2.78 when the new rates take effect on April 4.
DTE electricity rate hike approved - What it means for customers
DTE received approval to raise rates again, but the company says customers won't see their electricity bills go up - despite the Michigan Public Service Commission saying that they will.
Big picture view:
The public service commission says the increased rates will be used to fund projects designed to reduce power outages. This includes a $125 million proposed tree-trimming program, investments to reduce outages in areas that deal with frequent outages, improved grid reliability, and more.
In a press release, the commission said it also directed Consumers and other utility providers to explore changes to summer extreme weather policies, such as prohibitions on shutoffs during periods of extreme heat. These potential changes will be explored more in-depth in the future.
Local perspective:
While the Consumers electric rate increase doesn't apply to Metro Detroit residents, some in Southeast Michigan could see their gas bills increase if a separate rate hike is approved by the MPSC.
Late last year, the utility company requested a $248 million gas rate hike. If approved, the 10.8% increase would go into effect in late 2025.
Consumers Energy requests gas rate hike of $248 million
The commission that approves rate hikes gave Consumers Energy a $35 million increase in July. This time, the utility is asking for more than $200 million more.
What they're saying:
Michigan Attorney General Dana Nessel, who intervened in the rate hike case, referred to utility company rate increase requests as "a never-ending cycle."
"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 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. I applaud my team’s efforts in blunting the impact of this increase on ratepayers’ bills, but yet again electric rates are rising for Consumers Energy’s customers. 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."
The Source: Press releases from the Michigan Public Service Commission and Attorney General Dana Nessel's office were used to report this story.