MPSC Approves $276.6 Million Consumers Energy Rate Hike While Multiple Utility Cases Remain Open

LANSING — The Michigan Public Service Commission approved a $276.6 million annual revenue increase for Consumers Energy Co. on Friday, allowing the utility to collect additional revenue from its electricity customers starting May 1, 2026.

Residential customers will see their electricity bills increase by 8.9%, according to a release from Michigan Attorney General Dana Nessel's office. The approved amount is $160 million below what Consumers Energy originally requested.

Utility's Original Request

The utility had asked for a $436 million rate hike plus an additional $24.3 million surcharge, representing a 13% overall increase. This decision follows a $154 million electric rate hike that was approved last year.

Since 2020, regulators have approved nearly $800 million in total annual revenue increases for the company. According to state records, this is the largest rate hike since 2004.

Attorney General Intervenes

Michigan Attorney General Dana Nessel intervened in the case, arguing the MPSC should limit the increase to just 3.5%, which would have been a nearly 65% cut to the company's request.

"Consumers Energy customers will once again have to brace for higher bills because of the never-ending cycle of rate hikes passed on by the utility," Nessel said in a press release. "Unfortunately, this is something we have become accustomed to. Even though my office carefully reviews DTE and Consumers Energy rate hike requests for bloated and unjustified costs, it is ultimately the MPSC who determines how much to approve or how often these rate hikes occur."

Nessel added that this process continues to place the burden on ratepayers and demands greater accountability to ensure Michiganders receive the affordability and reliability they deserve.

"I urge our elected leaders of both parties to reconsider this badly broken system. It's both unfair and unsustainable for our state," she said.

Nessel's office has helped Michigan consumers save more than $4.1 billion by intervening in utility cases since she took office.

Impact on Consumers

Under the approved increase, a typical residential customer using 500 kilowatt-hours a month will see an increase of $6.46, or 6.1%, in their monthly bill. The new rates will take effect May 1, 2026.

The increase is part of the utility's 2026 Reliability Action Plan, which includes efforts to bury powerlines and install poles that can withstand stronger winds, storms and other severe weather.

Consumers Senior Vice President of Regulatory and Legal Affairs Kelly Hall said during a press conference Wednesday that monthly bills could grow by an average of 6.1% for customers using 500 kWh a month.

Looking Ahead

Under state law, Consumers Energy can file its next rate hike request as early as June 2026. During the March 25 call, Consumers officials also said they will file a notice of their next electric rate case on April 3.

Several other utility rate cases are currently open before the MPSC, including:

  • Consumers Energy natural gas rate hike request (U-21981)
  • DTE Energy natural gas rate hike request (U-21973)
  • SEMCO Energy Gas Company gas rate hike request (U-22002)
  • Upper Peninsula Power Company electric rate hike request (U-22032)

Additionally, DTE has announced its intent to file another electric rate hike request in April.

Broader Context

Consumers Energy provides electricity to approximately 1.9 million Michigan customers and natural gas to 1.8 million customers. The company initially sought to raise rates by 13%, or $436 million with an additional surcharge hike of $24.3 million.

This decision marks the latest in a series of utility rate approvals for Consumers Energy, with the commission approving $800 million in cumulative annual revenue increases for the company since 2020.

Related Developments

In separate action, the MPSC also approved six energy storage projects totaling 1,332 megawatts of capacity, improving grid reliability as the energy transition accelerates. The contracts approved include:

  • 450 MW Big Mitten Energy Center
  • 350 MW Monroe I Energy Center
  • 200 MW Fermi Energy Center
  • 132 MW Fish Creek Energy Center
  • 100 MW Cold Creek Energy Center
  • 100 MW Pine River Energy Center

The first three energy storage projects will provide a combined 1,000 MW of energy storage capacity to fulfill the settlement agreement in DTE Electric Co.'s most recent approved integrated resource plan.

The last three contracts are energy storage projects owned and operated by DTE Electric Co. that will serve the 1,383 megawatt data center being developed by Green Chile Ventures LLC in Washtenaw County's Saline Township.

Legislative Response

Michigan lawmakers have introduced bills to prevent yearly rate increase requests, although the measures haven't advanced through the state Legislature. These legislative efforts aim to address concerns about the frequency of utility price increases and the overall impact on Michigan households.

Sources: