State regulators approve nearly $140M rate hike for Consumers Energy natural gas customers
ClickOnDetroit | WDIV Local 4 • • business
Key Points:
- Michigan regulators approved a $139.2 million annual natural gas rate increase for Consumers Energy, reducing the utility's original $240 million request by 42%, effective November 1.
- Consumers Energy customers will face a 4.3% rate hike, translating to about $4 more per month on their natural gas bills.
- The Michigan Public Service Commission authorized a 9.8% return on equity for Consumers Energy to support investments in gas system safety and infrastructure upgrades.
- Michigan Attorney General Dana Nessel criticized the rate increase, urging regulators to cut the hike by more than half and highlighting concerns over inflated spending projections and unreasonable profit margins.
- The Commission rejected certain cost items, including a $7.9 million request for pipeline integrity work, citing Consumers Energy’s history of overestimating costs and under-spending on such programs.
