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Consumers Energy receives approval for rate hike following Nessel intervention

two linemen in safety gear work on wires on the ground in front of a utility truck
Consumers Energy

Michigan’s Public Service Commission is allowing Consumers Energy to raise its rates for natural gas used to provide heating to customers.

That’s after Attorney General Dana Nessel intervened to argue for a more limited rate increase.

Last year, Consumers Energy asked the Public Service Commission to allow its rates for natural gas to go up by nearly 8% for about $212 million in additional revenue. The utility also wanted to charge customers $2 a month more in service fees.

Consumers argued the rate increase was needed to pay for repairs and other operational costs.

But Nessel’s office said the utility didn’t need that much of a revenue bump and that it should lower how much it was asking for.

The utility adjusted its request, and the commission approved a 4% overall increase without the new service charges.

"The settlement...saves ratepayers millions, slashes the rate hike demand in half, and completely blocked an unnecessary intended service fee increase that otherwise would have landed on the utility bills of every residential Consumers Energy natural gas customer in Michigan," Nessel said in a press release.

The rate hike is expected to earn the utility $175 million in additional revenue.

Arjun Thakkar is WKAR's politics and civics reporter.
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