LANSING, MI (WTVB)M – Michigan Attorney General Dana Nessel has filed testimony before the Michigan Public Service Commission (MPSC) opposing a massive $456 million annual electric rate hike requested by Consumers Energy.
If approved as is the proposal would increase residential electric rates by 9.8% and raise its profit margin on capital investments to 10.25%, potentially creating one of the highest returns on equity in the nation.
Nessel argues that the MPSC should slash the requested rate hike by 53% and cap the return on equity at 9.20%.
She urged regulators to heavily weigh customer affordability, highlighting a rising number of residential disconnections under current electric rates and criticizing utilities for inflating requests with unjustifiable costs like executive incentive compensation and private jet travel.
The utility’s request comes on the heels of a $276 million rate hike approved by the MPSC back in March of this year, which Consumers Energy followed by announcing this new $456 million pursuit just seven days later.
Since 2020, the MPSC has already granted nearly $800 million in rate hikes for Consumers Energy, which currently serves roughly 1.9 million electricity customers across Michigan.
Nessel expressed frustration with the regulatory process, noting that the commission frequently “splits the difference” between her office’s recommendations and the utilities’ demands despite widespread household financial strain.
This dispute is part of a broader wave of utility cases currently active before the MPSC, which also include pending natural gas and electric rate hike requests from DTE, SEMCO Energy, and the Upper Peninsula Power Company.
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