$92 million rate increase approved for Consumers Energy electric customers - WWMT-TV
$92 million rate increase approved for Consumers Energy electric customers
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LANSING, Mich. - If you are a Consumers Energy customer, you may see an increase in you monthly bill.
The Michigan Public Service Commission has approved a more than $92 million increase in rates for electric customers of Consumers Energy Co.
The $92,009,000 increase is 57.4% lower than the $216 million rate increase the utility sought in its initial application. Consumers later reduced the request to $170.8 million, according to the MPSC.
A typical residential customer using 500 kilowatt hours per month will see an increase of $1.53, or 1.61%, on their monthly bill.
The company said it sought the increase to cover investments in generation and distribution assets, safety and legal compliance and enhanced technology as well as increased operations and maintenance expenses and increased financing costs.
The company had requested a return on common equity of 10.25% with an overall rate of return on total rate base of 6.11%, and a 51.50% common equity ratio. Today’s order authorizes a rate of return on common equity of 9.9% and an overall rate of return of 5.85% on a jurisdictional rate base of $13,669,075,000.
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