In a decision that will undoubtedly pinch the wallets of many, the Michigan Public Service Commission (MPSC) has greenlighted a substantial electric rate increase for Consumers Energy. According to a Michigan Attorney General press release, customers will now shoulder an additional $153.8 million burden in energy costs. Despite this new rate being significantly less than the initially proposed $325 million, it comes just one year after a prior increase, setting a trend that appears to burden consumers repeatedly.
The rate hike, though 53% lower than the request, has been met with concern by Michigan's Attorney General Dana Nessel, who has consistently strived to somewhat lessen these financial hits for ratepayers. "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," told Nessel to the Michigan Department of Attorney General. Advocacy efforts by Nessel's office managed to blunt the proposed rate increase, which now translates to a 2.8% hike for residential customers, as opposed to the 8.2% hike initially sought by Consumers Energy.
This latest development follows on the heels of a similar increase by DTE, which had its $217 million rate hike also cut in half through the Attorney General's intervention. But the relief provided may be short-lived as DTE already plans to request another rate hike next month. These back-to-back requests have drawn scrutiny given the spate of hikes surfacing with clockwork regularity each year, foiling hopes for stable utility bills.
While the regulated cadence of these requests is bound by a 12-month minimum interval, Consumers Energy made its latest request just 91 days following the previous year's approval. With both electricity and natural gas rates on an upward trajectory, the cumulative savings attributed to the Attorney General's interventions in such cases approach a notable $3.7 billion. The climb in rates continues to affect 1.9 million electricity customers and 1.8 million natural gas clients serviced by Consumers Energy throughout Michigan.
