Consumers Energy rate hike approved by Michigan commission: What it means for customers - Detroit Free Press

Consumers Energy rate hike approved by Michigan commission

Consumers Energy rate hike approved by Michigan commission: What it means for customers
Adrienne Roberts

The Michigan Public Service Commission on Friday approved a $92 million electricity rate increase for Consumers Energy, which will result in a $1.53 increase to the average monthly bill for a typical residential customer.

The Jackson-based utility had initially requested a $216 million rate increase, a request that was later reduced to $170.8 million.

Consumers Energy sought the increase to cover investments in generation and distribution assets, safety and legal compliance and enhanced technology, along with increased operations and maintenance expenses and increased financing costs, MPSC said.

Consumers Energy’s spokesperson Brian Wheeler described the order as a first step for its "reliability road map," a long-term plan it unveiled in September to cut power outage times and shrink the number of customers facing outages at a single time.

"The company’s investments to add technology, bury power lines and clear trees are essential to improving reliability for customers," Wheeler said in an emailed statement. "We’re acutely aware of the impacts on customers’ bills, which is why we’re balancing these upgrades by trimming costs and working more than ever to connect customers with cost-saving programs."

MPSC said it partially approved an investment recovery mechanism proposed by the utility in its efforts to improve the reliability and resilience of its electric distribution system. The order also includes approval for the first year of costs of a pilot program to relocate overhead distribution ground underground.

MPSC directed Consumers Energy to file detailed information that connects performance in operational metrics to proposed incentive compensation in its next general electric rate case because individual operational metrics will be scrutinized more critically going forward, it said.

Intervenors in the case included the Michigan Department of Attorney General, the Michigan Environmental Council, the Sierra Club, the Citizens Utility Board of Michigan and the Michigan Municipal Association for Utility Issues, among several others.

Consumers Energy's last electric rate increase of $155 million was approved by the MPSC in January 2023. The MPSC also approved a $95 million rate increase for Consumers Energy natural gas customers in August.

More on the utility and MPSC: ‘Outrageous’: DTE, Consumers enjoy close relationship with state panel that regulates them

More on Consumers Energy: Consumers Energy unveils plan to cut power outage durations, frequency

Consumers Energy provides electricity to 1.8 million customers in Michigan's Lower Peninsula, including cities such as Battle Creek, Flint, Grand Rapids and Kalamazoo.

The MPSC approved a $368.1 million electricity rate increase for DTE Energy in December. The Detroit-based utility had initially requested an increase of about $620 million.

Contact Adrienne Roberts: amroberts@freepress.com.