(The Center Square) – Advocacy groups are expressing concerns as Consumers Energy Co. wants to once again increase prices for customer utility rates.
Consumers Energy, which provides natural gas and electricity to 6.8 million of Michigan’s 10 million consumers in the lower peninsula, filed paperwork with the Michigan Public Service Commission in December requesting it allow the company to “adjust its retail natural gas rates so as to provide additional revenue of approximately $248 million annually.”
Since then, many different groups from the Sierra Club to the Environmental Law and Policy Center have filed petitions pushing back against the price increases.
A joint statement from a coalition of clean energy groups pushed for the company to invest in more clean energy, not “dirty polluting fossil fuels.”
“We need to hold Consumers Energy’s feet to the fire so they move to clean energy that will lower utility bills for Michigan ratepayers and reduce the dangerous pollution that is impacting our state,” said Odalis Perales from Michigan United in the statement. “We owe it to our kids and grandkids to protect them and their futures. Another rate increase is not the answer.”
Brian Wheeler, a media relations specialist for Consumers Energy, addressed that statement with The Center Square.
He said the rate increases will help the company “continue to modernize our natural gas system, making it even more safe, reliable, affordable and cleaner for customers.”
“Consumers Energy understands many Michiganders are facing challenging times, and no one wants to see rising energy bills ― especially our most vulnerable customers,” Wheeler told The Center Square. “We are working to manage the increasing costs of energy supply as we continue to help customers manage their monthly bills and provide payment assistance programs to customers in need. We are taking action to fulfill our obligations and deliver energy value for Michigan today and in the decades to come.”
Shortly after Consumers request, Michigan Attorney General Dana Nessel announced she plans to intervene in the request, which, if approved, would increase rates for residential ratepayers by 12%.
“Consumers Energy is seeking to hike gas rates yet again, only five months after their last rate hike was approved,” Nessel said. “My office will carefully review this request . . . We will continue to work to hold the utilities accountable and keep unjustified costs off ratepayers’ bills.”
In March, the Michigan Public Service Commission approved a more than $92 million increase in rates for electric customers, with the average customer seeing an increase of $1.53, or 1.61%, on their monthly bill.
Currently, Michigan ranks one of the most expensive states in the nation for electricity costs, as the state’s electrical grid in the state also struggles with frequent and prolonged outages.
Consumers Energy said in a recent press release that it is making it a goal to provide more reliable energy. In 2024, the average customer experienced 21 fewer power outage minutes
compared to 2023, and over 93% of customers saw their power restored in less than 24 hours.
“Even with major storms and tornadoes last year, we moved closer to goals that enable better quality of life in the Michigan communities we serve,” said Greg Salisbury, Consumers Energy’s vice president of grid design. “Last year’s improvements were significant, and we plan to build on them in 2025.”
Yet, some think the solution to high prices is not more green energy as advocacy groups argue, but allowing for competition in Michigan’s energy sector.
Jason Hayes, director of energy and environmental policy for Michigan’s Mackinac Center, told The Center Square that it’s time for “electricity choice” in Michigan.
“Michigan has high electricity costs, at least partly due to our refusal to stick with electricity choice,” Hayes said.