(The Center Square) – Most Michiganders will face higher electric bills after the state approved a $154 million electric rate hike for Consumers Energy.
While a more than 52% reduction from the original hike Consumers sought, the typical residential customer is still expected to see an increase of $2.78, or 2.79%, on their monthly bill starting in April.
The company applauded the decision by the Michigan Public Service Commission, stating in a press release that it will enable it to work on improving the reliability of the power grid throughout the state.
“We know our customers are counting on us to deliver energy more reliably,” said Chris Laird, Consumers Energy’s vice president of electric operations. “[The] plan approval gives us more resources to do important work that affects people directly.”
Michigan already ranks one of the most-expensive states in the nation for electricity costs, coming in with the 13th-highest retail price for electricity in the country.
This is according to a December report from the U.S. Energy Information Administration, which looked at the average retail price of electricity for the residential sector. In Michigan, it was 18 cents per kilowatt-hour.
Other reports have also found that the electrical grid in the state also struggles with frequent and prolonged outages.
Last March, the Michigan Public Service Commission approved a more than $92 million rate hike for Consumers, with the average customer seeing an increase of $1.53, or 1.61%, on their monthly bill.
By law, utility companies can only file requests for rate increases every 12 months. Consumers Energy filed this rate increase request just 91 days after its last electric rate hike was approved by the commission last year.
Michigan Attorney General Dana Nessel pushed for the commission to approve a rate increase of just 1.8%, arguing that rate hikes are becoming too regular.
“Only 12 months since their last rate hike was approved, Consumers Energy customers are facing yet another rate hike in what has become a never-ending cycle,” Nessel said. “Consumers Energy and DTE keep coming back to the trough, and over and over again Michiganders are forced to pay higher and higher bills just to keep the lights on.”
Along with the rate hike, the commission also approved funding for a number of investments, including $125 million for tree trimming efforts by the company “meant to improve reliability of the electric grid and reduce customer outages.”
Consumers said it plans to clear trees along 8,000 miles of lines in 2025.
The company is Michigan’s largest energy provider, providing natural gas and electricity to 6.8 million of the state’s 10 million residents in the 68 Lower Peninsula counties.
