Michigan Families Face Back-to-Back Rate Hikes as Consumers Energy Plans Another Electric Bill Increase

Just seven days after the Michigan Public Service Commission approved a $276.6 million rate hike, Consumers Energy announced it plans to seek another electric rate increase.

The Jackson-based utility filed a notice with the MPSC on April 3, 2026, stating it will submit a rate application on or after June 2, 2026. The filing would be based on projected costs through April 30, 2028.

Under the previously approved increase, which takes effect May 1, 2026, a typical residential customer using 500 kilowatt-hours a month will see their bill rise by about $6.46, or 6.1%.

Repeated Rate Requests Draw Fire From Michigan Attorney General

Michigan Attorney General Dana Nessel said she will intervene and scrutinize "every penny" of the upcoming filing, noting the timing of the announcement.

"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 Monday. "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. 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."

Consumers Energy Serves Nearly 2 Million Michigan Customers

The Jackson-based utility serves nearly 2 million electric customers in lower Michigan. The previously approved $276.6 million increase was about a third less than the company's most recent request of $423 million, but still represents another significant financial burden for Michigan families.

Consumers last received an electric rate increase in March 2025, when the MPSC signed off on a $153.8 million hike. The typical rate case takes about a year to complete, and Consumers' next rate case wouldn't take effect until some time in 2027, if approved.

Rate Increases Aim to Fund Grid Improvements

Revenue from higher rates is intended to pay for continued upgrades to the electric infrastructure. Consumers officials say the investments are part of the company's "Reliability Roadmap," a multiyear plan unveiled in 2023 aimed at improving electric service across its territory.

"We're spending effort and investment across our territory, our historic urban areas, to all of our rural areas, to make the system stronger and secure the grid," Greg Salisbury, vice president of electric distribution, said during a March 25 news media call.

The investments will include burying power lines to shield them from weather and aggressively trimming trees with overhanging branches to prevent outages.

MPSC Members Defend Utility Investments

Katherine Peretick, one of three MPSC members, defended the utility's approach during the March 25 proceedings.

"I want to emphasize reliability and affordability are not competing objectives," Peretick said. "They are fundamentally linked. Investments that are well-targeted, data-driven and cost-effective will reduce outages, minimize the need for emergency and reactive spending and, ultimately, lower costs for customers over time."

Critics Question the Pattern of Rate Hikes

The Jackson-based utility has been criticized in recent years for poor electric reliability. Audits have found both Consumers and Michigan's other large utility, DTE Energy, perform worse than their peers when it comes to getting power back on after outages.

Both utilities have said they are investing money generated by electric rate increases back into the grid to prevent future outages and cut power restoration times.

During the March 25 call, Consumers officials also said they will file a notice of their next electric rate case April 3. Under state law, utilities are required to inform the MPSC ahead of time when they plan on seeking a rate increase. But repeated rate increases for Consumers and DTE have been criticized, particularly as the overall cost of living creeps upward.

Michigan Lawmakers Seek to Limit Rate Increase Requests

Michigan lawmakers have introduced bills to prevent yearly rate increase requests, although the measures haven't advanced through the state Legislature.

The MPSC is the three-member body that considers rate increase requests from utility companies.