Faulty Consumers Energy electric meters spark probe - Crain's Detroit Business

Faulty Consumers Energy electric meters spark probe | Crain's Detroit Business

LANSING — Michigan is investigating Consumers Energy, the state's second-biggest power utility, over malfunctioning automated electric meters that led the company to estimate bills because it could not pull data from the devices.

The probe, which the Michigan Public Service Commission launched Friday, came in response to "numerous" customer complaints that the Jackson-based utility estimated electricity bills for multiple consecutive months. Regulators also will investigate delays in new service installations for electric and natural gas customers.

The agency raised concerns about potential violations of rules, including one that says a utility must make reasonable efforts to replace or repair meter-reading equipment so no more than two estimated monthly bills are issued. The regulation was possibly violated more than 38,000 times, given the number of meters that received estimated billings for three straight months or longer.

In an order, the commission directed Consumers to explain, in detail, its performance reading meters since 2020, how many devices failed, its communications to customers about estimated bills and to answer other questions. The report is due Aug. 4, after which commission staff will submit an analysis with recommendations by Sept. 29.

The complaints came as the company transitioned its advanced metering infrastructure (AMI) meters from using 3G, or third-generation cellular technology, to fourth-generation technology known as 4G.

In February, the agency extended a waiver so the utility could continue to not have to test all 680,000 meters being upgraded or replaced with 4G capability. Regulators learned in April that Consumers had been estimating bills for many customers with 3G meters, even before wireless companies discontinued 3G services in January because the meters were showing blank screens.

"As such, customer bills were estimated based on historical usage and no true-up could occur given the inability to pull actual meter data from the malfunctioning meters," Commissioners Dan Scripps and Katherine Peretick wrote.

Consumers had been aware of the problem, which it blamed on battery contamination issues, as far back as 2020. More than 900,000 meters could potentially be affected.

Regulators want additional information on other issues, too, because customers may have been and continue to be billed too much based on time-of-use rates and the utility's inability to pull specific time-of-day readings from malfunctioning meters.

"Consumers Energy is committed to doing right by its customers and improving our performance and communications. We will cooperate with the commission on this effort and are focused on delivering the service our customers and the MPSC expect," spokesperson Brian Wheeler said in a statement.

Consumers Energy provides electric service to 1.8 million customers in 62 of Michigan's Lower Peninsula counties. Another 1.7 million customers have gas service provided by Consumers Energy, including much of Southeast Michigan.