Consumers Energy is preparing to ask Michigan regulators for another natural gas rate hike after winning approval for a $139 million increase — a move that could leave Michigan households bracing for another jump in a basic monthly expense.
Here's what to know
According to WLNS, Consumers Energy has submitted a "filing announcement," which starts the process for another natural gas increase. The Michigan Department of Attorney General said exact figures aren't available yet, but the outlet reported that the formal request is expected.
For a typical residential customer, the last case is expected to add about $3.92 per month starting Nov. 1. That increase stems from the Michigan Public Service Commission's approval of a gas rate hike of just over $139 million after regulators cut Consumers' original $240 million request by 42%.
Rather than waiting several years and then making one larger request, Consumers told WLNS that it prefers to pursue smaller increases more frequently. The company said that approach helps keep energy bills "more predictable and manageable."
More background
WLNS, citing news partner MLive, reported that state rules allow regulated for-profit utilities to make one rate increase request each year. Once that filing announcement is submitted, the next round begins after the previous one is settled.
However, for customers, lower commodity prices do not offset approved delivery-rate increases, which can still raise monthly bills. Consumers also pointed to falling gas prices in its defense, saying in a statement that rates went from $11.90 per 1,000 cubic feet of natural gas in 2022 to $10.03 in 2025.
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Heating costs are not optional for households. A utility can highlight price declines in one part of the bill while still seeking approval to collect more overall, leaving customers to absorb added costs while also paying for essentials such as groceries and gasoline.
What's being done?
In a statement sent to WLNS, the company said, "Our request to state regulators to approve this Reliability Action Plan is all about continuing that work to improve our customers' quality of life."
Still, exact figures for the upcoming gas request are not yet available, so customers do not know how large the next proposed increase could be. The utility also said the plan will "secure the grid" while keeping Michigan residential electric bills "well below the national average and below neighboring states like Ohio and Indiana."
Michigan Attorney General Dana Nessel framed the issue as more than a routine filing fight for customers already dealing with higher bills: "Major utilities like Consumers Energy and DTE employ entire teams of staff to craft rate hike applications to file one right after another, and their bill paying customers pay all the costs to craft these massive proposals."
Where can I learn more?
Michigan isn't alone in dealing with repeat utility filings and higher monthly bills. The articles below look at other disputes over annual rate cases in the state and broader battles over electricity price increases.
• In Michigan, regulators faced a fifth straight rate hike request for electric and water service.
• A Michigan regulator moved to end annual rate cases as regional utility prices stayed high.
• Michigan's attorney general urged regulators to cut DTE's proposed hike after back-to-back filings.
• In Colorado, regulators questioned Xcel's claim that another rate increase would stay affordable.
• Across the US, utilities sought $31 billion in hikes as power bills became a flashpoint.
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