LANSING, Mich. — Regulators shaved more than $100 million off a proposed electric rate increase by Consumers Energy, but ultimately signed off on a plan that would result in more than a quarter billion dollars in new money for the utility over the next year.
The Michigan Public Service Commission (MPSC) approved Consumers Energy to charge its customers more for electricity. The increase would total up to $276 million for the utility.
The rate increase is expected to cost the average Consumers Energy electric customer, who uses 500 kilowatt-hours a month, about $6.46 each bill cycle. That amounts to a roughly 6.1% increase from current rates, according to the MPSC.
The average increase of electric costs in Michigan has been below the rate of inflation since 2020. Consumers in the mitten state paid an average of $119 per month in 2024, roughly $23 below the national average, per the MPSC.
The increased rate is set to begin on May 1, 2026.
Consumers Energy had requested a rate increase that would raise $423 million over the next year.
Michigan
Consumers Energy pushing ahead with Reliability Action Plan
About two dozen organizations, including state agencies, companies, and nonprofits, filed testimony in the months-long review of the proposal. The transcript of the public input totaled 4,616 pages.
As part of Friday's decision, the MPSC also approved $21.7 million to spend on tree trimming and $14.6 million related to cloud computing. Those costs will be spread out through a deferral program that will limit the immediate impact to customers' bills, said the MPSC.
Consumers Energy will be required to prove it used the new funds on approved projects, including efforts to reduce the frequency and length of power outages. If the utility cannot, it could be ordered to refund some money to customers.
The authorized actions aling with the findings of an audit of Consumers and DTE Electric Company, the state's largest electric utilities.
The commission asked Consumers Energy to look into what it would cost if it sped up its tree trimming cycle, going from the current rate where every stretch of low-voltage line is cleared of branches every five years up to every four years. Consumers is expected to report back to the MPSC in it's next round of rate review, which starts with an initial filing at the start of June.
Follow FOX 17: Facebook - X (formerly Twitter) - Instagram - YouTube
