Consumers Energy Wants More of Your Money—AG Nessel Says 'Not So Fast

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Attorney General Dana Nessel aims to slash Consumers Energy's proposed $303 million electric rate hike by more than 70%, citing excessive costs and poor service reliability.

AG Nessel Moves to Protect Michigan Consumers from Soaring Utility Bills

LANSING – Michigan Attorney General Dana Nessel has launched a critical challenge to Consumers Energy's proposed $303 million electric rate increase, filing testimony on Friday urging the Michigan Public Service Commission (MPSC) to dramatically reduce the hike by over 70%. Consumers Energy's rate hike request, filed in May, would increase electric bills by an average of 6.5%, with residential customers facing a steeper 8.2% surge. The proposed increase would come on the heels of a $92 million rate hike approved just six months ago.

Nessel's office recommends limiting the increase to less than 2%, allowing Consumers Energy to raise only $82.9 million instead of the requested $303 million. According to the Attorney General, the company's current request is "excessive and unjustified," highlighting the burden placed on Michigan consumers who already pay some of the highest rates in the nation while enduring unreliable service.

“My office carefully scrutinizes every rate hike before the Michigan Public Service Commission because consumer protection remains one of my top priorities,” said Nessel. “Michigan utility customers are already subjected to some of the nation’s highest electric rates, lowest standards of reliability and service, and utility partners who only ever ask for more and more from increasingly dissatisfied customers.”

Utility Giants Criticized for Decades of Poor Performance and Investment Neglect

The testimony filed by Nessel also referenced a recent MPSC-commissioned audit, which found that both Consumers Energy and DTE Energy have underperformed in terms of reliability and outage response, despite consistent rate hikes. Decades of investment neglect by these major utilities have left Michigan customers facing subpar service while footing the bill for capital expenditures that have yet to deliver meaningful improvements.

Consumers Energy, a subsidiary of CMS Energy, serves 1.9 million electric customers across Michigan’s lower peninsula. The company's track record of rate increases, combined with its ongoing infrastructure failures, have drawn growing frustration from both consumers and regulators. Nessel’s intervention comes at a critical time, as the MPSC prepares to review the testimony and determine the final allowable rate increase.

In addition to the base rate hike, Consumers Energy is seeking to impose a separate $21.8 million surcharge on customers for deferred costs, scheduled to begin in March 2025. This surcharge would further increase financial pressure on Michigan residents, adding to Nessel's concerns about the company’s priorities.

Broader Context: A Pattern of Rate Hikes and Consumer Pushback

Consumers Energy's latest rate hike request is part of a broader pattern seen across Michigan's utility sector. DTE Energy and Consumers Energy have both faced criticism for raising rates while delivering unreliable service. The Attorney General's efforts to cut back on these increases reflect growing public frustration, particularly as Michigan enters the colder months, when energy costs typically surge.

With the MPSC set to deliberate, the fate of Consumers Energy’s request remains uncertain, but Nessel’s firm stance signals her office's commitment to protecting consumers from what she views as unjustified corporate profit grabs at the expense of essential public services.

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