Consumers Energy prepares for next rate hike request

(The Center Square) – Consumers Energy is preparing to file a request for another natural gas rate hike increase, just months after the last increase was approved.

The company, which is Michigan’s largest energy provider, filed its notice of intent with the Michigan Public Service Commission in October.

Brian Wheeler, a media relations specialist for Consumers Energy, told The Center Square in an exclusive interview that it has not yet released when the official request for the rate hike will be filed.

“It’s important to note we have not yet filed another rate request with the MPSC, and any request would not approved for up to 10 months. Following the approval, the new rate would go into effect 30 days after MPSC approval,” Wheeler said. “We haven’t shared the exact timing yet.”

In its filing announcement to the commission, Consumers Energy said the official request would come on or after December 16, 2025.

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Currently, Consumers Energy provides natural gas and electricity to 6.8 million of Michigan’s 10 million consumers in the lower peninsula.

Michigan Attorney General Dana Nessel expressed frustration with the company’s plan for another request.

“We cannot keep allowing these utilities to treat these hikes as business as usual while their customers struggle to pay their bills,” Nessel said. “My office will scrutinize this upcoming rate hike request for unreasonable or unsupported costs, just as we do in every major case, and just like every other time we’ve done so, I am sure we will uncover millions in indefensible costs. Michigan’s utility corporations must be held accountable to their customers as they seek these incessant rate hikes.”

Wheeler responded to Nessel’s comments.

“Consumers Energy knows our customers count on us every day for the energy they need,” Wheeler said. “We recognize our responsibility to serve customers by working to keep bills affordable. We want our customers to understand what goes into their bill and what actions they can take.”

The company has not yet released how much it plans to request in the rate hike. The MPSC approved its last rate hike to the tune of $157.5 million, which averaged an increase of $6.44, or 8.1%, on the average residential consumer’s monthly bill. That increase began on Nov. 1.

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In September, Michigan Democrats joined a coalition of advocacy groups pushing Michigan’s first-ever Ratepayer Bill of Rights.

The coalition, which has labeled itself “Our Bills Are Too Damn High,” is part of an effort to bring down energy prices. It has accused utility companies in the state of “pocketing profits” instead of making the necessary investments to improve Michigan’s power grid.

Consumers Energy argues the rate hikes are needed to keep up with inflation and improve the reliability of the energy system in Michigan.

“Rate cases fund operational projects that serve customers,” Wheeler said. “Consumers Energy purchases most of our customers’ winter natural gas needs during the summer when prices are typically lower and stores the gas within our extensive storage facilities to avoid higher winter prices and market volatility.”

In addition to this coming natural gas rate hike increase request, the MPSC is currently considering electric rate hike increases from Consumers Energy and DTE Energy. DTE Energy is also preparing to file a natural gas hike request in the coming weeks.

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