(The Center Square) – Millions of Michiganders will see their energy bills increase this winter.
This comes after the Michigan Public Service Commission recently approved a natural gas rate increase for Consumers Energy, Michigan's largest energy provider.
While the increase is 37% lower than Consumers Energy's initial request, it will still have an impact on consumers' bills.
The commission finally ends approve The $157.5 million rate increase would increase the average monthly bill for residential consumers by an average of $6.44, or 8.1%. The increase will begin on November 1.
Consumers Energy provides natural gas and electricity to 6.8 million of the 10 million consumers in Michigan's Lower Peninsula.
Michigan Attorney General Dana Nessel expressive She was frustrated by the increase, which she believed should have been only $76.5 million.
“It is disappointing that the MPSC approved a rate increase that was not only significantly higher than my office's recommendation, but even went beyond its judge's conclusion that only $142 million was reasonable,” Nessel said. “Michigan families deserve a regulator that puts their interests first, but this order still forces consumer energy ratepayers to pay far more than is fair or reasonable.”
Nessel refers to recommend MPSC Administrative Law Judge James M. Varchetti concluded that a tax rate increase of only $142 million would make up for the “projected revenue shortfall.”
In addition to rising gas prices, Consumers Energy is asking for an approximately $436 million increase in electricity rates, the same as before report by the central square.
It would be the largest rate hike request in decades and comes just months after the state government announced officially recognized Electricity prices increased by $154 million.
Nessel calls this requirement “corporate greed.” She is pushing to reduce the requested increase by 64%, to a total of $157 million.
“After combing through this massive electric rate increase request piece by piece, we found that nearly two-thirds of them were exaggerated, unreasonable and completely unfair to customers,” Nessel said. “Michigan households are already being squeezed by higher costs at every turn, and they should not be forced to fund the excessive demands of for-profit companies.”
It is unclear when the commission will consider the request, which could come into effect in March 2026.
Consumers Energy believes the rate hike is needed to keep up with inflation and improve the reliability of Michigan's energy system.
“We know our customers are counting on us to deliver energy more reliably,” Chris Laird, Consumers Energy's vice president of electric operations, said after the last rate increase. “[The] The approval of the plans gives us more resources to carry out the important work that directly impacts people. “
The state is working to slow price increases.
September, Michigan Democratic Party join in A coalition of advocacy groups is pushing for Michigan’s first-ever Taxpayer Bill of Rights.
The league labeled itself “our bills are too high.” It accuses the state's utilities of “profiteering” rather than making necessary investments to improve Michigan's power grid.
“Every price increase puts less money on the table and makes it harder to stay afloat. I hear every day from my Grand Rapids constituents that the bill is too high,” said Rep. Christian Grant, D-Grand Rapids.
Michigan's energy grid has long been a source of concern because reported before by the central square.
Research shows that while Michigan consumers pay higher power bills than many Americans, the state has also struggled with a less-reliable power grid.
Currently, Michigan is one of the states with the most expensive electricity bills in the United States, and the retail price of electricity ranks 12th in the United States. This is based on a May report From the U.S. Energy Information Administration, which looked at average retail electricity prices in the residential sector.
Elyse Apel is a reporter for The Center Square covering Colorado and Michigan. Ellis is a graduate of Hillsdale College and her work has appeared in a variety of national publications, including the Washington Examiner, the American Observer and the Daily Telegraph.