Consumers Energy Files Another Rate Hike Request Just Days After Last One Approved

Consumers Energy Begins Process for New Electric Rate Increase on June 2

Consumers Energy has formally announced it will file a new electric rate increase request on or after June 2, 2026. The announcement came just seven days after the Michigan Public Service Commission approved a $276.6 million rate hike that takes effect May 1.

The utility filed its notice with the MPSC on April 3, marking what critics call another example of Michigan's regulated utility system operating at the bare minimum allowed by law. If Consumers follows through with the June 2 filing date, it will mark two consecutive years of seeking rate increases on the first day legally permitted.

Ratepayers Trapped in Never-Ending Loop

Michigan Attorney General Dana Nessel has condemned the timing as proof that the current system is broken. Her office intervenes in utility rate cases, scrutinizing requests and advocating for lower costs for consumers.

"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 in a statement. "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 since 2020, state regulators have approved approximately $800 million in annual revenue increases for Consumers Energy alone. The new filing will not result in additional increases until at least summer 2027, since rate applications typically take 10 months to process.

DTE Energy Doing Same Thing

Consumers Energy is not alone in this approach. DTE Energy, which supplies electricity to customers across southeast Michigan, filed a notice for an electric rate hike in February just five days after winning approval of a $242 million annual increase.

Both utilities serve more than 80 percent of Michigan households and have been under increasing scrutiny for their rate filing patterns. An MLive analysis in 2024 found Consumers and DTE are slightly accelerating the clip at which they request rate increases compared to a decade ago.

Utility Defends Regular Rate Requests

Consumers Energy spokesperson Katie Carey defended the approach, stating that beginning the rate case process now is essential for the company to secure approval of its 2027 reliability action plan.

"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 in an email.

The utility maintains that its average residential customer bill is below the national average, though Michigan remains the priciest state in the Midwest for residential power costs when measured in cents per kilowatt-hour.

What This Means for Michigan Families

The last approved increase for Consumers included a 9.9 percent return on equity for capital expenditure projects, including spending related to new data center construction. The average residential customer should expect to see an 8.9 percent increase on their bill, amounting to approximately $6.46 each month.

Nessel's office has intervened in utility cases, saving Michigan consumers over $4.1 billion since she took office. Despite these efforts, she believes legislative action is necessary to address the ongoing issue of continuous rate increases.

Democrats in the state Senate have introduced a bill to increase the time between utility rate cases, implementing multi-year rate plans that are the norm in some states. However, the legislation has not advanced, and it is unclear if the measure would reduce utility costs.

Republican Push for 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. The proposal would require energy companies to meet a 100 percent clean energy standard by 2040, with benchmark goals of 50 percent by 2030 and 60 percent by 2035.

Rep. Steve Frisbie (R-Battle Creek), one of the lawmakers working on the plan, argued that the energy standard is driving the increase in energy costs. However, a report from Lazard found that unsubsidized wind and solar energy remain the most cost-effective forms of new-build energy.

The Bigger Picture

Both Consumers Energy and DTE Energy are also pursuing natural gas rate hikes. The MPSC continues consideration of a separate natural gas rate increase request from Consumers Energy with a decision expected later this year.

Nessel pointed to recent utility requests that included private jet travel for executives and other unsupported expenditures to justify their rate increases. While the Michigan Public Service Commission maintains that rate increases have fallen below the rate of inflation in recent years, consumers across Michigan continue to face rising energy costs.

The Michigan Advance reported that the Friday filing from Consumers Energy was not a surprise, as utility executives had been working on the next one since late March, ahead of the decision in its last electric rate case.

"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," Nessel said.