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LANSING, Mich. -- Michigan Attorney General Dana Nessel announced plans to intervene in Consumers Energy's latest rate hike request. The utility company, which serves nearly 2 million electric customers in lower Michigan, plans to file for another increase on or after June 2. This announcement comes just days after the Michigan Public Service Commission approved a $276.6 million rate hike, effective May 1, which will increase residential bills by 8.9%.
Nessel criticized Consumers Energy for seeking another increase so soon after the last approval, stating, "Ratepayers don’t have a choice in who they buy their energy from, yet our utility companies still choose to make these relentless and unsustainable rate hike demands year after year." She pledged to scrutinize the upcoming request and urged the Legislature to find a bipartisan solution to prevent continuous rate increases.
The previous request from Consumers Energy sought a $436 million increase, but the commission approved a lower amount. Nessel's office has intervened in utility cases, saving Michigan consumers over $4.1 billion since she took office. Despite these efforts, Nessel believes legislative action is necessary to address the ongoing issue of high energy rates.
Consumers Energy's spokesperson, Katie Carey, stated that the rate case process is essential for securing approval of the company's 2027 reliability action plan. The company aims to make "timely, thoughtful investments" to maintain reliable and cost-effective service. Carey emphasized the importance of proactive system maintenance and regular rate requests to keep energy bills predictable and manageable.
The rate hike proposal will be based on projected costs for a 12-month period through April 30, 2028, using 2025 as a historical test year. The company has not disclosed the size of the upcoming request. Nessel's intervention highlights the ongoing scrutiny of Michigan's utility companies amid concerns over high rates and poor reliability.