Consumers Energy and Attorney General Dana Nessel are disgareeing about the Consumer Energy’s proposed $248 million natural gas rate hike.
MID-MICHIGAN (WJRT) – The Michigan Public Service Commission approved a natural gas rate hike for Consumers Energy, allowing the company to collect an additional $157.5 million from ratepayers.
The company also is moving forward with a request for $436 million more per year from electric customers.
The natural gas rate increase is 37% lower than the company’s initial request after Michigan Attorney General Dana Nessel’s office argued against the hike. She contends the rate hike exceeds a justified amount.
“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.
Consumers Energy initially sought a $248 million annual increase, equating to a 12% hike for residential customers. Spokesman Brian Wheeler said the company saved ratepayers $120 million by purchasing most of its annual natural gas supply in the summer months, when prices are lower.
“That strategy, combined with continued system investments while controlling costs, is helping reduce increases and keep rates as competitive as possible while also providing assurance for our customers that our system will be safe and keep stoves on, water hot and homes warm,” he said.
The Michigan Attorney General’s Office continues arguing against a $436 million electric rate increase from Consumers Energy, which the company requested in May.
Nessel pointed out that request came three months after the company won approval for a $154 million per year electric rate hike last March.
“Time and again, Consumers Energy comes to the MSPC demanding outrageous rate hikes – and time and again, my office intervenes to protect Michigan families,” Nessel said.
Her office argued that Consumers Energy’s next proposed electric rate hike should be slashed by 65% to around $200 million a year. Nessel called it the largest electric rate increase request of her tenure in likely in decades for Michigan customers.
The MPSC has not announced when it will decide on the $436 million request.