JACKSON, MI (WTVB) – On Tuesday the Michigan Public Service Commission (MPSC) granted Consumers Energy approval to increase its natural gas rates by $157.5 million, a significant but scaled-back adjustment aimed at enhancing the utility’s infrastructure safety and reliability.
Consumers had initially requested $248 million before revising it to $217 million; the final approval represents a 36% reduction from the original ask, reflecting compromises reached through settlement agreements with state regulators, the Attorney General’s office, and consumer advocates.
This hike, that takes effect on November 1st will add approximately $4.44—or 6.88%—to the monthly bill of a typical residential customer using 75 hundred cubic feet of gas, underscoring the ongoing tension between utility modernization needs and ratepayer affordability.
The rate increase primarily funds critical upgrades to Consumers Energy’s aging pipeline system, including the replacement of high-risk gas lines prone to leaks and interruptions, improvements to city gate stations that manage gas pressure, and expansion of an advanced methane detection program to minimize environmental emissions and public safety risks.
Consumers says the investments, totaling over $208 million for infrastructure alone, are essential for maintaining a resilient network amid increasing demands and climate challenges. While consumer groups hailed the MPSC’s decision as a “decent compromise” that keeps more money in customers’ pockets, critics, including Attorney General Dana Nessel, continue to scrutinize such requests, noting Consumers Energy’s pattern of frequent filings, this marks the sixth in six years.
Comments