Lansing — Consumers Energy submitted an application to state regulators Tuesday seeking a $456 million annual rate increase for its nearly 1.8 million electricity customers in Michigan’s Lower Peninsula.
The filing came amid increased scrutiny of rising energy prices by political leaders and about two months after the Michigan Public Service Commission approved a $276-million rate hike for the Jackson-based utility.
Attorney General Dana Nessel’s office described the new request as “massive.” And the Michigan League of Conservation Voters said the new ask, which will now be considered by the commission, represented Consumers’ largest in 20 years.
“Costs for everything have gone up, and the never-ending rate hikes from monopoly utility companies are putting the squeeze on Michigan families,” Alex Kellogg, energy accountability manager for the Michigan League of Conservation Voters, said in a statement Tuesday.
In its 1,759-page filing, company officials at Consumers Energy contended the rate increase was needed to support the infrastructure investments involving a clean energy initiative and reliability improvements.
“Consumers Energy is committed to customer value and improving customer service, and this filing is a representation of the commitment put forth in the company’s purpose — world-class performance delivering hometown service,” Heidi Myers, executive director of revenue requirements and regulatory affairs for the utility, said in the new filing.
A January Detroit News investigation found the price of electricity for residential customers in Michigan had more than doubled in the past 20 years, outpacing inflation and increasing at higher percentages than the rates in 46 other states.
In Michigan, dominant utilities hold monopolies within their service areas. And the three-member public service commission, appointed by the governor, gets to decide whether proposed rate increases are just and reasonable.
Commissioners often trim back rate requests sought by utilities.
Under Michigan law, utilities can launch new rate cases every 12 months. Some utility critics have cited the frequency of cases as a reason that rates have jumped in Michigan.
Consumers Energy is seeking to implement the newly sought rate boost beginning May 1, 2027, according to its filing.
Nessel’s office said the utility is also pursuing an additional 12-month surcharge of $25 million and $52 million over three years for storm restoration expenses.
At its requested amount, Consumers Energy seeks to hike residential electric rates by 9.8%, according to Nessel’s office.
“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, a Democrat, said Tuesday. “My office will intervene in this case as we always do, but we already know the predictable pattern likely to play out: Consumers Energy loads its rate hike request with completely unsupported, inflated costs, and the MPSC simply splits the difference.”
In February, the Michigan Public Service Commission approved a $242 million rate increase for DTE Energy.
The Detroit-based utility announced its intention to seek another rate hike five days later and is pursuing a $474 million increase.
cmauger@detroitnews.com
This article originally appeared on The Detroit News: Consumers Energy seeks $456 million electricity rate hike
Reporting by Craig Mauger, The Detroit News / The Detroit News
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