Consumers Energy raises electric bills for Michigan customers

In recent developments, the Michigan Public Service Commission approved a rate increase from Consumers Energy, a significant utility company servicing parts of mid-Michigan and southeast Michigan. This decision was made on a Friday, allowing Consumers Energy to raise rates by approximately 2.8%, which is projected to affect residential customers starting on April 4. A standard household will see their electricity bill increase by an average of $2.78 per month. The overall revenue generated from this hike is estimated at around $153,809,000. The purpose of this additional funding is to enhance the reliability and resilience of the electric grid, aiming to reduce the frequency of power outages experienced by customers. The strategy includes a comprehensive four-year tree trimming schedule and system updates to promptly identify faulty areas in the grid. Notably, Consumers Energy had originally sought a more substantial rate increase of 8.2%. However, after negotiations involving the Michigan Attorney General Dana Nessel, it was argued that the increase should only be limited to 1.8%. This spring's adjustment comes nearly one year after the commission permitted a previous rate hike for Consumers Energy in March 2024, which was set at 1.6%. According to Michigan law, utility companies can request rate hikes only once a year, which adds to the significance of these recent adjustments. Furthermore, the necessity for the hike was underscored by the company’s commitment to tackling the issues of frequent power outages which have reportedly affected approximately 10% of customers who experience four or more outages annually. Consumers Energy aims to reduce that figure to 6%. The company’s leadership, particularly vice president of electric grid design Greg Salisbury, has emphasized their dedication to improving the electric grid for future generations. Plans are in motion to ensure that even during severe storms, the infrastructure will support reliable electricity delivery. In a broader context, another major electric provider in the region, DTE Energy, was recently granted approval for a 4.6% rate increase that went into effect prior to this announcement. As DTE has already indicated intentions to file for another increase in 2026, the trend suggests an ongoing pattern of rising costs for consumers in the state. Attorney General Nessel has criticized both Consumers Energy and DTE Energy, remarking on the repeated rate increases that put financial pressure on Michiganders and asserting that consumers are unjustly burdened with higher bills to maintain electricity services.