- State regulators approved a a $157.5 million natural gas rate hike for Consumers Energy
- Starting in November, the average customer bill will rise by $6.44 a month, or about 8.1%
- Attorney General Dana Nessel criticized the decision, saying it exceeds her office’s recommendation
Over 1.8 million Michigan households can expect to pay more than $6 more each month for heat this winter after regulators approved a Consumers Energy natural gas rate hike.
The $157.5 million hike approved by the Michigan Public Service Commission is 37% lower than what the company originally requested. Consumers said the rate hike will help replace gas lines most at risk of leaks to help improve the safety of and the reliability of the grid.
Customers will begin to see the increase on their monthly bill starting in November. The average bill will increase by $6.44 or by 8.1%
“Consumers Energy knows our customers count on us every day and we recognize our responsibility to safely deliver the energy Michigan’s homes and businesses need while keeping bills as low as possible,” Brian Wheeler, a Consumers Energy spokesperson, said in a statement to Bridge Michigan.
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“To do this, the company buys most of its natural gas during the summer when prices are lower and stores it to avoid higher winter prices. This strategy avoided over $120 million in natural gas supply purchases last winter.”
Consumers Energy filed a $248 million rate increase in December, which would have raised utility rates for customers by 12%. Michigan Attorney General Dana Nessel argued the company’s rate hike should be reduced by almost 70% to $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 in a press statement. “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 testified earlier this year that Consumers Energy could find the money for improvements elsewhere. An MPSC administrative law judge agreed that the rate hike was too much.
In June, Nessel stepped in to challenge Consumers Energy’s request for a $436 million yearly electric rate hike, coming just three months after a different increase was approved in March.
DTE Energy also filed a notice to the MPSC to apply for a to-be-determined rate hike for natural gas customers, only a year after getting a $113 million rate hike.
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