LANSING, MI (WTVB) – Michigan Attorney General Dana Nessel filed testimony with the Michigan Public Service Commission (MPSC) this week, urging regulators to slash a pending Consumers Energy natural gas rate hike by approximately 61 percent.
Nessel is requesting that the utility’s original $240 million increase proposal be reduced by more than $146 million, capping any potential approval at roughly $94 million.
The Attorney General’s office argues that the full request would place an undue burden on residents, potentially increasing bills for families and small businesses by 8%.
According to a press release from the Michigan Department of Attorney General, a review of the utility’s application uncovered several instances of “inflated capital spending projections” and “unreasonable profit margins”. Nessel’s testimony also calls for the rejection of a “revenue decoupling mechanism,” which would allow the company to recover financial losses linked to warmer weather and reduced energy sales.
While Consumers Energy maintains the increase is necessary to invest in its delivery system, Nessel contends the current request is “stuffed” with overstated costs at a time when many Michiganders are already facing economic hardships.
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