Michigan Puts the Kibosh on Massive Consumers Energy Rate Hike

New energy rates approved by the Michigan Public Service Commission could lower monthly bills paid by Consumers Energy customers.

Requested Rate Increase Reduced by $100 Million

In December of last year, Consumers Energy requested to increase its revenue from gas customers by $136 million, which would have resulted in a natural gas rate increase of 5.7% for its customers.

Michigan Attorney General Dana Nessel announced Tuesday (7/23) that a settlement has been reached and the Michigan Public Service Commission has approved a move to reduce that ask by more than $100 million. The net increase will result in a $35 million dollar revenue increase for the utility.

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Settlement for Home Service Plan

Consumers Energy has sold its Home Service Plan program and sought approval to split the proceeds 50/50 with customers. However, the state Attorney General opposed this plan and proposed that the utility distribute 100% of the proceeds from that sale to customers.

Ultimately, an agreement was reached to distribute 75% of the proceeds to customers and keep the remaining 25% to offset revenue that will not be realized from a heftier rate hike. Customers will see this distribution in the form of a bill credit beginning October 1, 2024.

Consumers Energy Customers Should See Lower Monthly Bills

The smaller rate increase that has been granted to Consumers Energy, combined with the Home Service Plan credit will result in slightly lower energy bills for Consumers customers.

• The rate increase will likely mean a monthly bill increase of about $1.16 for the average Consumers Energy gas customer.
• After the Home Service Plan credit is applied, customers with average-size homes will see a net decrease of about $0.27 each month.