Consumers Energy Files for Another Rate Hike Just 7 Days After Last Increase Approved

Back-to-Back Rate Hikes Leave Michigan Families With Higher Electric Bills

Consumers Energy is seeking another rate increase on or after June 2, 2026, just seven days after the Michigan Public Service Commission approved a $276.6 million electric rate hike set to take effect May 1, 2026.

The filing announcement submitted to regulators on April 3 marks the beginning of what could be another multi-hundred-million-dollar request, according to the utility company. Under current law, this is the first date Consumers Energy is eligible to submit a new request following the previous approval.

The most recent rate increase authorized Consumers Energy to earn a 9.9% return on equity for new capital expenditure projects, including those related to data center construction. That approval came on top of nearly $800 million in annual revenue increases for Consumers Energy since 2020, according to Attorney General Dana Nessel.

"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 electricity 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 about 1.9 million electric customers in Michigan and natural gas to 1.8 million customers statewide.

Reliability Plan Approved for 2026

The rate increase was part of Consumers Energy's 2026 Reliability Action Plan, which the MPSC approved on Friday. The plan provides funding for grid improvements across Michigan's Lower Peninsula designed to keep the lights on more dependably for close to 2 million homes and businesses.

"Consumers Energy is helping our customers by securing the grid and giving them the tools to reduce and manage their bills," said Greg Salisbury, Consumers Energy's senior vice president of electric distribution. "Our Reliability Action Plan represents an investment that will lead to fewer and shorter power outages."

Consumers Energy says the average electric customer lost power for an hour less time last year compared to 2021 thanks to grid reliability investments.

The 2026 reliability plan includes:

• Doubling the number of miles where trees are trimmed away from power lines this decade
• Continued investments in burying power lines in known trouble areas
• Installation of stronger poles capable of withstanding more powerful winds
• Technology to prevent cyber threats to the power grid

"We know the cost of everything is going up, from energy to health care to groceries," said Kelly Hall, Consumers Energy's senior vice president of regulatory and legal affairs. "That's why we ensure that we're making smart, cost-effective upgrades to secure the grid, fix problems before they happen, and improve reliability for our customers."

Next Filing Expected in June

Consumers Energy plans to file its 2027 Reliability Action Plan in June to continue making investments that secure the grid next year. The company also announced it would start the process for its next rate case in June.

In a statement responding to Nessel's comments, Consumers Energy emphasized its approach to rate setting:

"We announced in March we were going to start the process for our 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. 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."

The utility company also highlighted its money-saving programs and assistance available to customers who need help managing their bills.

The Cost to Ratepayers

The previous rate increase of $276.6 million would have raised household rates by an estimated 8.9%, according to ABC12 News. That approval came as part of a $436 million rate increase request that also included a $24.3 million surcharge, which would have raised household rates by 13%.

Attorney General Nessel's office participates in utility rate cases, the legal proceedings where rate hike requests are scrutinized. Her office aims to lower costs for consumers during these proceedings.

"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 said.

Consumers Energy's approach of filing multiple requests over time rather than waiting several years means ratepayers face incremental increases rather than larger, less predictable jumps in the future.

Sources:

• https://www.wilx.com/2026/04/06/consumers-energy-announces-plan-new-rate-hike-days-after-2766m-approval/
• https://www.abc12.com/news/business/consumers-energy-wins-approval-of-2026-electric-reliability-plan/article_b0ca6aaf-db73-45cd-9200-6670c7ee939a.html
• https://www.michigan.gov/ag/news/press-releases/2026/04/06/consumers-energy-announces-another-new-rate-hike-case