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Michigan regulators approve $154 million increase as customers brace for higher electric bills, prompting renewed scrutiny over recurring utility hikes.
Consumers Energy customers across Michigan will soon see another increase in their electric bills. The Michigan Public Service Commission (MPSC) on Thursday approved a $153.8 million rate hike, just a year after the company’s last request was granted. The decision has sparked new criticism over the frequency and scale of utility increases, even as regulators stress they’ve reduced the original request by more than half.
The approved hike amounts to a 2.8% increase for residential electric customers. It’s a steep drop from Consumers Energy’s original proposal of $325 million, which would have raised bills by 8.2%. However, critics, including Michigan Attorney General Dana Nessel, say ratepayers are being asked to bear an unfair and growing burden.
Electric rate hikes in Michigan become near-annual event
“Only 12 months since their last rate hike was approved, Consumers Energy customers are facing yet another rate hike in what has become a never-ending cycle,” said Nessel, who formally intervened in the rate case. “Consumers Energy and DTE keep coming back to the trough.”
The utility filed its rate increase case in May 2024, just 91 days after the previous rate hike was finalized. That’s legal—utilities may file for increases annually—but consumer advocates question whether the process is being overused.
In her testimony, Nessel’s office argued that Consumers Energy should receive no more than an $82.9 million increase, or about 1.8%. The final decision, while higher than that figure, still marks a 53% cut from the utility’s initial request.
Attorney General claims billions saved for consumers
Nessel emphasized that her interventions in utility rate cases have saved Michigan consumers nearly $3.7 billion to date. Her office remains one of the few formal checks on utility companies before the MPSC, which regulates energy rates across the state.
The Attorney General also highlighted a parallel issue with DTE Energy, which was recently granted a $217 million rate increase, also reduced by half following her office’s involvement. DTE has already filed notice of its intention to seek another rate increase in April 2025.
Meanwhile, Consumers Energy still has an active natural gas rate hike request under review by the commission (Case No. U-21806), further heightening tensions over the affordability of utility service in Michigan.
Experts: Need for grid upgrades complicates pricing
According to a 2024 report by the U.S. Energy Information Administration, utilities across the country are investing heavily in modernizing the grid, hardening infrastructure against extreme weather, and supporting the transition to renewable energy sources. These investments are frequently cited by utility companies as justification for recurring rate hikes.
However, Michigan’s rate of increase has drawn national attention. A 2023 study from the Citizen Utility Board of Michigan found that Consumers Energy and DTE Energy rank among the least reliable utilities in the Midwest, despite charging some of the region’s highest rates.
Utility rate increase comes amid inflation and economic strain
Rising utility bills are especially painful as Michigan families face broader cost-of-living pressures, including food, housing, and healthcare.
According to the U.S. Bureau of Labor Statistics, electricity prices in the Midwest have climbed 7.6% over the past year, outpacing national averages. This latest increase by Consumers Energy will only add to household financial strain, critics warn.
With both Consumers and DTE routinely seeking annual increases, the conversation in Lansing is shifting toward structural reform. Several lawmakers are exploring legislation that would place limits on rate hike frequency or introduce new consumer protections.
Related news and broader energy policy context
This latest decision comes amid growing scrutiny of utility regulation in Michigan. Investigative reports by Bridge Michigan and MLive have highlighted the high frequency of power outages and customer dissatisfaction with major utilities.
For comparison, residential electric rates in Michigan are higher than those in Indiana, Ohio, and Wisconsin, according to the U.S. Energy Information Administration.
Sources:
- Michigan Public Service Commission, Case U-21590
- Office of the Michigan Attorney General
- U.S. Bureau of Labor Statistics
- U.S. Energy Information Administration
- U.S. Energy Information Administration – “Electric Power Annual 2024”
- Citizen Utility Board of Michigan – “Utility Performance Report 2023”
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