Consumers Energy filed a $456 million electric rate increase request with the Michigan Public Service Commission on June 2. Michigan Attorney General Dana Nessel announced her office will intervene on behalf of ratepayers.
The filing would raise residential electric bills by nearly 10 percent if approved. Consumers Energy serves roughly 1.9 million electricity customers across the state, including throughout the Upper Peninsula and the Marquette area.
A second major hike in three months
The request arrives less than three months after the MPSC approved a $276.6 million rate increase for Consumers Energy. That earlier increase took effect on May 1.
Since 2020, the commission has approved nearly $800 million in electric rate hikes for the utility, according to state records cited by the Attorney General's office.
Consumers Energy also included a $25 million 12-month surcharge to cover unaccounted energy distribution spending between March 2025 and February 2026. The company is additionally seeking $52 million spread across three years for storm restoration expenses from ice storms in March and April 2025.
"Consumers Energy and DTE keep demanding more and more money, the MPSC continues to reward their incessant demands, and the cycle of constant, growing rate hikes are pushing Michigan families and businesses to the brink," Nessel said in a statement.
The company's case: fewer outages
Consumers Energy called the filing its 2027 Reliability Action Plan. The company says the investments will reduce power outages caused by severe weather.
Greg Salisbury, Consumers Energy's senior vice president of electric distribution, said the utility has seen a 28 percent drop in outage times during normal conditions since 2021.
"We know cost is top of mind for customers, which is why we're focused on smart, strategic investments to improve service, ensuring 75 cents of every customer dollar goes back into the grid," Salisbury said in a statement.
The company said spending would focus on burying power lines, increasing tree trimming, and repairing circuits that experience repeated outages. Consumers Energy also proposed increasing its low-income customer credit from $8 to $12 per month.
Critics call it the largest request in two decades
The Michigan League of Conservation Voters called the filing the company's largest rate hike request in 20 years.
"While we pay more and more on our energy bills, monopoly utility companies, like Consumers Energy, make billions in profits," said Alex Kellogg, the league's energy accountability manager. "Our bills are too damn high already."
Kellogg urged state leaders to pass a Ratepayer Bill of Rights that would tie rate increases to company performance and bar utilities from donating to state lawmakers.
The Citizens Utility Board of Michigan found that Michigan had the second highest number of outage minutes per customer of any state in the nation. The group said the problem is largely driven by Consumers Energy and DTE Energy.
House Republicans push energy reform
Rep. Rachelle Smit, R-Martin, said the latest filing underscores the need for legislation the House passed last month. House Bills 5710-5711 would require the MPSC to prioritize affordability and reliability over other policy goals.
"Michigan energy providers and the residents footing the bill can't keep up with the expensive green energy charade being pushed on us," Smit said. "Families in Martin, Delton, Allegan and across Michigan just want to pay a reasonable amount for lights that stay on."
The bills are currently awaiting Senate consideration.
What happens next
The MPSC has final authority to approve, reduce, or deny the request. The commission declined to comment on the active case. Public information officer Matt Helms said the agency does not comment on cases before commissioners.
A decision is expected after regulatory review in the coming months. If approved, the increase would take effect on May 1, 2027.
Other rate cases currently open before the MPSC include Consumers Energy's natural gas rate request, DTE's electric and natural gas requests, SEMCO Energy's natural gas request, and Upper Peninsula Power Company's electric rate hike request.
Sources:
- Dana Nessel plans to intervene as Consumers Energy requests $456M electrical rate increase, Michigan Advance
- Consumers Energy seeks $456M annual rate hike plus surcharges; bills could rise 10%, WWMT
- Consumers Energy seeking $456M electric rate hike from state regulators, ClickOnDetroit
- Rep. Smit: Consumers' new rate hike underscores need for House Republican energy reforms, MI House Republicans