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Public Service Commission approves Consumers’ $423M rate hike

lineman in a cherry picker adjusting wires near a house, there's ice-covered branches out of focus in the foreground
Courtesy
/
Consumers Energy
A Consumers Energy employee works on a power line.

The most recent rate increase could mean anywhere from $14 to $145 added to monthly bills.

The Michigan Public Service Commission approved a rate increase of $423 million for Consumers Energy on Friday.

The increase is part of the utility’s 2026 Reliability Action Plan, which includes efforts to bury powerlines and install poles that can withstand stronger winds, storms and other severe weather.

Consumers Senior Vice President of Regulatory and Legal Affairs Kelly Hall said during a press conference Wednesday that monthly bills could increase anywhere from $14 to $145.

Commissioner Shaquila Myers said she was in favor of the rate increase because it focused on system reliability and customer affordability.

“The order also prioritizes proactive infrastructure improvements as they play an important role in long term affordability by limiting costly emergency, reactive repairs that occur during extreme weather and storm events over time,” Myers said. “This approach leads to more efficient system operations and more predictable costs.”

One of the efforts Consumers says it will undertake to improve reliability is increasing its tree trimming schedule.

Broken and fallen tree limbs are one of the leading causes of power outages during ice and windstorms.

Currently, Consumers trims the trees around its lines approximately every 10 years.

Commissioner Dan Scripps said Consumers planned to use the additional funds to shorten its tree trimming cycle.

“Every part of the system will be trimmed every five years with direction in the order to study the cost of benefits of going even further,” Scripps said.“Consider the four-year tree trim cycle that has, more than anything, resulted in some of the reliability improvements that we've seen over the last couple of years.”

Some public commenters at the commission meeting expressed frustration with the commissioners’ approval of the rate change.

One commenter, Peter, said the increase will not improve customer affordability like the commissioners claim.

“People can't afford these raising bills as it is. And you guys just keep jacking things up,” he said. “You guys got to stop saying affordability when every one of these meetings is a bill raise.”

The utility plans to file for another rate increase in June.

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