(The Center Square) – Millions of Michiganders will see increases in their energy bills this winter.
This comes after the Michigan Public Service Commission recently approved a natural gas rate hike for Consumers Energy, Michigan’s largest energy provider.
While the increase was 37% lower than Consumers Energy’s original request, it will still have a impact on consumers’ bills.
The commission ended up approving a rate increase of $157.5 million, which will average an increase of $6.44, or 8.1%, on the average residential consumer’s monthly bill. The increase will begin on Nov. 1.
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 increase, which she argued should have only been $76.5 million.
“It is disappointing that the MPSC approved a rate hike far above not only my office’s recommendation, but even beyond its own judge’s finding that only $142 million was justified,” Nessel said. “Michigan families deserve a regulator that puts their interests first, yet this order still forces Consumers Energy ratepayers to pay far more than is fair or reasonable.”
Nessel is referring to a recommendation from James M. Varchetti, the MPSC’s administrative law judge, who found that a rate increase of just $142 million was needed to cover the “estimated revenue deficiency.”
In addition to the gas increase, Consumers Energy has also requested an electric rate hike of about $436 million, as previously reported by The Center Square.
This would make it the largest increase requested in decades and comes just months after the state approved a $154 million electric rate hike.
Nessel labeled that request “corporate greed.” She is pushing for a 64% reduction in that requested increase, which would total $157 million.
“After combing through this massive electric rate hike request line by line, we have found nearly two-thirds of it to be overstated, unjustified, and flat-out unfair to its customers,” Nessel said. “Michigan families are already being squeezed by higher costs at every turn, and they should not be forced to bankroll a for-profit corporation’s excessive demands.”
It is unclear when the commission might consider this request, which could take effect in March 2026.
Consumers Energy argues the rate hikes are needed to keep up with inflation and improve the reliability of the energy system in Michigan.
“We know our customers are counting on us to deliver energy more reliably,” said Chris Laird, Consumers Energy’s vice president of electric operations, following the last rate hike. “[The] plan approval gives us more resources to do important work that affects people directly.”
There are efforts to slow these price hikes in the state.
In September, Michigan Democrats joined a coalition of advocacy groups pushing Michigan’s first-ever Ratepayer Bill of Rights.
The coalition has labeled itself “Our Bills Are Too Damn High.” It has accused utility companies in the state of “pocketing profits” instead of making the necessary investments to improve Michigan’s power grid.
“Every increase takes more money off the kitchen table and makes it harder to keep up. I hear it every day from my constituents in Grand Rapids, the bills are just too high,” said State Rep. Kristian Grant, D-Grand Rapids.
Michigan’s energy grid has long been a cause of concern, as previously reported by The Center Square.
Studies have flagged that, though Michigan consumers are paying more than many Americans for electricity, the state has also consistently dealt with a less reliable power grid.
Currently, Michigan ranks one of the most-expensive states in the nation for electricity costs, coming in with the 12th-highest retail price for electricity in the country. This is according to a May report from the U.S. Energy Information Administration, which looked at the average retail price of electricity for the residential sector.
