Michigan AG Seeks 61% Cut to Consumers Energy Rate Hike Request
Attorney General Dana Nessel seeks a 61% cut to Consumers Energy’s $240 million rate hike, citing “predictable pattern of greed” by the utility company.
LANSING, MICHIGAN — Attorney General Dana Nessel announced Thursday that her office will seek a 61% reduction to Consumers Energy’s $240 million electric rate increase request, while calling for broader reforms to the state’s utility regulatory system.
Nessel asked the Michigan Public Service Commission to reject most of the utility company’s proposed rate hike, citing inflated capital spending projections and unreasonable profit margins. She also requested the commission deny increases to monthly service charges and reject a revenue decoupling mechanism that would force customers to cover the company’s lost revenue during summer months.
Pattern of “Predictable Greed”
“As always, Consumers Energy has stuffed its rate hike request with ridiculous, overstated costs,” Nessel said in a statement. “By now, we should all be exhausted by this predictable pattern of greed, and complete disregard for the Michigan utility customer.”
The attorney general criticized the regulatory process itself, suggesting the commission typically compromises between her office’s recommendations and the utility’s requests. “We already know how this process ends. The MPSC will almost certainly split the difference between our recommendation and Consumers Energy’s rate hike request to appease the utility, but where does that leave families bled for more every year?” she said.
Nearly $800 Million in Rate Increases Since 2019
Nessel pointed to the commission’s track record of approving substantial rate increases for Consumers Energy, noting the regulatory body has allowed nearly $800 million in annual increases since 2019. She argued this demonstrates that Michigan’s energy rate system is “fundamentally broken.”
The attorney general’s intervention comes as part of her ongoing advocacy for utility customers facing rising energy costs. Her office regularly participates in rate cases before the Public Service Commission, which oversees Michigan’s major energy companies.
Commission Declines Comment
Matt Helms, a spokesperson for the Michigan Public Service Commission, declined to comment on Nessel’s statements since they relate to an active rate case currently under review.
A spokesperson for Consumers Energy did not respond to requests for comment regarding the attorney general’s opposition to their rate increase proposal.
The case will proceed through the commission’s standard review process, which includes public hearings and analysis of the utility’s financial justifications for the proposed rate changes. The commission will ultimately decide whether to approve, modify, or reject Consumers Energy’s request.
