Consumers Energy Files New Rate Hike Request Just Seven Days After Last Increase Approved

Utility Files Notice to Seek Another Multi-Hundred-Million Dollar Rate Increase

Consumers Energy announced plans to file another rate increase request just seven days after the Michigan Public Service Commission approved its last hike. The utility filed a notice on April 3 announcing its intent to seek another electric rate increase on or after June 2, 2026.

This timing represents the first date Consumers Energy is legally permitted to submit a new request under current law. The notice was submitted to the Michigan Public Service Commission on April 3, seven days after regulators approved a $276.6 million electric rate increase set to take effect May 1.

It is not yet known how much the company will seek in its upcoming request. Under current law, a summary of the new request is expected to be filed ahead of the formal application, which the utility said it plans to submit in June.

The rate hike just approved by the MPSC hasn't even taken effect yet, and Consumers Energy is already gearing up to reach back into the pockets of Michigan families, said Attorney General Nessel. Ratepayers don't have a choice in who they buy their energy from, yet our utility companies still choose to make these relentless and unsustainable rate hike demands year after year.

Previous Rate Increase Already Approved

In the previous rate case, Consumers Energy requested a $436 million rate increase and an additional $24.3 million surcharge, which would have raised household rates by 13%. The Public Service Commission approved a $276.6 million increase, representing an 8.9% rise for Consumers' electric customers.

The most recent rate increase also authorizes the utility to earn a 9.9% return on equity for new capital expenditure projects, including those related to data center construction.

Attorney General Questions Broken System

According to Attorney General Dana Nessel, the commission has approved nearly $800 million in annual revenue increases for Consumers Energy since 2020.

Announcing plans to file what we expect to be a new multi-hundred-million-dollar request just seven days after securing a nearly $280 million hike proves how truly broken this system has become, Attorney General Nessel said Monday.

Consumers Energy provides electricity to about 1.9 million customers in Michigan and natural gas to 1.8 million customers statewide.

Utility Defends Timing

Consumers released the following statement in response to Nessel's comments Monday:

We announced in March we were going to start the process for our next case. While the Attorney General continues to focus on inflammatory headlines, we continue the work of securing the grid and improving reliability for customers, the utility said. Michigan's rate-setting process is open and transparent, with a nearly year-long timeline that includes opportunities for public and stakeholder input.

Beginning this process now is essential to securing approval for the 2027 Reliability Action Plan and making timely, thoughtful investments in 2027 to maintain safe, reliable, and cost-effective service, Consumers Energy said.

Along the way, Consumers Energy remains focused on helping our friends and neighbors by offering money-saving programs and connecting customers with assistance that can help manage bills. To help keep energy bills more predictable and manageable, Consumers Energy emphasizes proactive system maintenance and reliability investments and files regular rate requests rather than waiting several years, when increases can be harder for customers.

Legislative Response

Nessel's call for action follows years of scrutiny into Michigan's utility companies amid concerns of high rates and poor reliability. In her statement, Nessel noted that her office's intervention is no longer enough to address continuous increases to residents' energy prices, calling on the Legislature to come together and find a bipartisan solution.

Sen. Kevin Hertel (D-St. Clair Shores) in January put forth Senate Bill 768, requiring utilities to file a rate plan that would cover three years, rather than one, allowing customers to hold the same rate over multiple years.

Michigan House Republicans are also pushing forward on efforts to roll back past rate increases while eliminating the state's clean energy laws, requiring energy companies to meet a 100% clean energy standard by 2040.

Rep. Steve Frisbie (R-Battle Creek), one of the lawmakers working on the plan, argued that the energy standard, which includes benchmark goals of 50% clean energy by 2030 and 60% by 2035, is driving the increase in energy costs.

However, a report from Lazard, a multinational asset management firm based in the U.S., found that unsubsidized wind and solar energy remain the most cost-effective forms of new-build energy. Another report from the International Renewable Energy Agency found that around 91% of utility-scale renewable energy projects were more cost-effective than fossil fuel alternatives.

Michigan House Democrats previously put forth their own regulations on energy utilities, calling for a ratepayer bill of rights focused on outage compensation, energy rates, ensuring ratepayer funds are not used on CEO bonuses or other luxuries, among other changes.