by Scott McClallen
Attorney General Dana Nessel’s office voiced her office’s opposition to the Michigan Public Service Commission’s granting Consumers Energy request for a rate increase.
Consumers Energy filed its application to the MPSC seeking a rate increase of about $266 million for its Michigan jurisdiction on April 28, 2022, to start in 2023. If the proposal is approved as filed, the overall rate impact would be an increase of 6.5% for all rate classes and a 6.8% increase in residential rates.
“Michigan consumers are already struggling to make ends meet,” Nessel said in a statement. “They simply cannot afford a substantial increase in the cost of their utility bills, and I am committed to using the resources of my office to ensure no resident pays more than is absolutely necessary for reliable energy.”
The AG recommended rates be increased by $123.8 million at most, with residential customers receiving a 2.88% or 63.1 million rate increase compared to the $145.2 million increase under the Consumers Energy proposal. The overall rate increase for all ratepayers would be 3.02%.
Nessel also recommended Consumers Energy be held accountable for achieving service reliability goals by deferring 20% of the revenue related to specific reliability programs.
If Consumers Energy fails to meet the goals, Nessel recommended the deferred amount should be refunded to ratepayers.
Consumers Energy has until September 15, 2022, to file rebuttal testimony arguing why it must hike rates.
Consumers Energy provides electricity to approximately 1.9 million people throughout Michigan and natural gas to 1.8 million customers statewide.
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Scott McClallen is a staff writer covering Michigan and Minnesota for The Center Square. A graduate of Hillsdale College, his work has appeared on Forbes.com and FEE.org. Previously, he worked as a financial analyst at Pepsi.
Photo “Dana Nessel” by Dana Nessel. Background Photo “Consumers Energy” by WeaponizingArchitecture. CC BY-SA 4.0.
