Consumers Energy Files Another Rate Hike Request Days After MPSC Approval Sparks Attorney General Fury

Consumers Energy is seeking another electric rate increase just seven days after regulators approved a $276.6 million rate hike, prompting Michigan Attorney General Dana Nessel to call the utility system "truly broken."

The announcement, submitted to the Michigan Public Service Commission on April 3, signals Consumers Energy's intent to file a new rate request "on or after June 2, 2026." This follows approval of a rate increase that kicks in on May 1, under which a residential customer using 500 kilowatt-hours per month will see their bill rise by about $6.46, or 6.1 percent, according to the commission.

The approved increase represented about a third less than the company's most recent request of $423 million. It followed a $153.8 million rate increase the MPSC approved for Consumers Energy electric customers in March 2025.

Attorney General Slams Rapid-Fire Rate Increase Requests

Attorney General Dana Nessel released a statement on Monday slamming Consumers Energy for filing a new rate case within seven days of the Michigan Public Service Commission approving its last increase.

"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," Nessel said.

"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."

Nessel noted that the commission has approved nearly $800 million in annual revenue increases for Consumers Energy since 2020. The utility sells electricity to 1.9 million residents across the state.

"It is past time for legislators on both sides of the aisle to come together and fix this broken system for Michiganders," Nessel said.

While Nessel pledged to scrutinize every penny of the Consumers Energy request, she said 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.

Previous Rate Case Included Unsupported Costs

Although the amount requested by Consumers Energy is not yet known, Nessel noted that its previous request sought a $436 million rate increase and a $24.3 million surcharge, which would have increased residential energy rates by 13 percent.

"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," Nessel said.

Nessel's statement highlighted that recent requests from Consumers and DTE Energy — Michigan's two largest power providers serving more than 80 percent of the state — have included inappropriate costs such as private jet travel for executive staff, millions in executive incentive compensation tied to maximizing shareholding returns, and other unsupported expenditures that could not be demonstrated to be reasonable or prudent.

Lawmakers Propose Legislative Oversight

State Senator Kevin Hertel (D-St. Clair Shores) introduced Senate Bill 768 in January, 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.

The bill would create legislative oversight for the MPSC. However, the bill has stalled in the Democratic-controlled Senate.

Hertel placed blame with the Democratic Senate as the reason his bill remains stalled, noting that by statute, the governor-appointed MPSC members are responsible for approving all rate increases. But wouldn't it be prudent for the legislature to hold transparent oversight hearings for any rate increases?

House Republicans Push Clean Energy Rollback

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 percent 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 percent clean energy by 2030 and 60 percent by 2035, is driving the increase in energy costs.

However, reports from Lazard, a multinational asset management firm based in the United States, 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 percent of utility-scale renewable energy projects were more cost-effective than fossil fuel alternatives.

House Democrats Seek Ratepayer Bill of Rights

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.

Consumers Energy Defends Its Approach

In a statement to media, Consumers Energy said it announced in March it was going to start the process for its 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."

Katie Carey, Consumers Energy's director of media relations, said in an email that the utility remains focused on helping its customers 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," Carey said.

What Comes Next

According to Consumers Energy's filing announcement, the company will file its rate request on or after June 2, 2026.

The MPSC is a three-member panel appointed by the governor. Gov. Gretchen Whitmer appointed the current panel members.

Ratepayers are trapped in a loop where the demands for more from these massive utilities never end, even as energy prices become unaffordable for working families. The Michigan Public Service Commission has approved rate increases for Consumers Energy and DTE Energy customers totaling billions of dollars in recent years, with the latest approval adding nearly $277 million to Consumers' revenue stream.

The utility's announcement comes as Michigan families already struggle with high prices, with the war in Iran pushing gas prices above $4 per gallon and federal tariffs raising retail prices by 7 percent last year.

Sources:

• Michigan Department of Attorney General press release: https://www.michigan.gov/ag/news/press-releases/2026/04/06/consumers-energy-announces-another-new-rate-hike-case
• Michigan News Source: https://www.michigannewssource.com/2026/04/consumers-energy-signals-new-rate-hike-filing-as-soon-as-june-2/
• Patch Michigan: https://patch.com/michigan/across-mi/michigan-attorney-general-calls-action-consumers-energy-seeks-another-rate
• Planet Detroit: https://planetdetroit.org/2026/04/nessel-consumers-energy-rate-hikes/