LANSING, Mich. (WLNS) — Michigan Attorney General Dana Nessel has filed testimony, urging the Michigan Public Service Commission (MPSC) to slash Consumers Energy’s latest natural gas rate hike case by millions.
In December, Consumers Energy requested a $240 million annual hike in natural gas rates. Nessel says she is seeking to cut the request by more than $146 million, which she claims would save “families and small businesses millions.”
According to the Office of the Attorney General, if approved, residential customers would face an 8% price hike.
If the MPSC approves Nessel’s recommendations, the proposed 10% rate would be reduced by around 3.5%.
In a news release, the Department of Attorney General claims it uncovered examples in the hike application where Consumers Energy allegedly inflated spending projections.
Nessel says she is calling on the MPSC not to increase rates and to reject the “utility’s request to force its ratepayers to pay for the utility’s lost revenue during warmer months and sales losses through a Revenue Decoupling Mechanism.”
“While Michigan families and small businesses struggle to keep the heat on, Consumers Energy stakeholders are making money hand over fist,” Nessel said in a news release.
Consumers Energy has shared the following statement regarding the natural gas rate hike request:
“We understand the concerns of our customers as we continue to see the rising costs of living across almost every sector of life. These investments are essential to delivering safe, secure, efficient, and cleaner natural gas service, while responsibly managing costs to keep energy affordable for customers. Our average residential gas bills are about 12 percent below what they were in 2022. This reflects our dedication to keeping energy costs manageable for families while continuing to prioritize the long-term needs of the community we serve.”
We thank the MPSC and their staff for their continued careful review of our rate case and their recommendations for investments that support our goal of providing natural gas safely, effectively, and affordably. We will continue to work with stakeholders in an open and transparent ratemaking process with the Michigan Public Service Commission.”
Consumers Energy supplies electricity to around 1.9 million Michigan residents and natural gas to around 1.8 million.
In April, Consumers Energy requested an electricity rate hike with the MPSC. The request would grant the utility company the “authority to increase its rates for the generation and distribution of electricity and for other requested relief, on or after June 2, 2026.”
Consumers Energy seeks additional rate hike following recent approval
A week prior, the MPSC approved a Consumers Energy $276.6 million electricity rate increase. Regulators framed the increase as a way to cut outage times and reduce blackout frequency by investing in the distribution system and tree trimming.
On Thursday, the Michigan Senate Energy and Environment Committee considered Senate Bill 768, which would alter the current rate hike request schedule. Currently, energy companies can ask for a rate increase for gas and electricity once every 12 months. If passed, the bill would allow them only one request every three years.
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