Michigan AG Dana Nessel challenges $436 million electric rate hike, calling out corporate overreach and defending consumers.

Consumers Energy’s Historic $436 Million Rate Hike Request Faces State Scrutiny

Michigan Attorney General Dana Nessel has intervened in Consumers Energy’s proposed $436 million annual electric rate increase, marking what may be the utility’s largest requested hike in decades. Filed June 2 with the Michigan Public Service Commission (MPSC), the utility’s application (Case U-21870) would, if approved, take effect in May 2026 and raise household electric bills by an estimated 13.3%.

This request comes just two months after Consumers received approval for a separate $154 million hike, which took effect on April 4. In a statement, Nessel characterized the back-to-back increases as a pattern of “corporate greed” that lacks accountability.

Consumers Energy Customers in Michigan Could See 13.3% Bill Hike

If the full request is granted, Consumers Energy’s rates would climb 9.2% overall, with Michigan households bearing the brunt. On top of that, the company wants an additional $24 million from customers to recover deferred distribution system costs. This separate amount would be billed through a 12-month surcharge.

In a formal notice of intervention, Nessel said her office “will thoroughly scrutinize this request” and will work to ensure that Michigan residents “do not pay any cost that does not have commensurate quantifiable benefits.”

Attorney General Nessel: Protecting Michigan Ratepayers from Unjustified Costs

Nessel’s office routinely intervenes in rate cases before the MPSC. Her team—working with financial and energy experts—has challenged expenditures like private jet travel for utility executives and other costs not directly tied to customer service or infrastructure improvement.

“These are costs that benefit executives, not customers,” Nessel warned in previous cases. The AG’s office has reportedly saved Michigan ratepayers more than $3.7 billion through such interventions since she took office.

Multiple Rate Cases Now Open Before State Regulators

Consumers Energy, which serves 1.9 million electric and 1.8 million gas customers across Michigan, is not alone in seeking rate increases. DTE’s latest electric rate case (U-21860) and Consumers’ natural gas rate case (U-21806) are also active before the MPSC.

The pressure on Michigan utility customers continues to build. As inflation and cost-of-living issues mount, public tolerance for back-to-back rate increases is wearing thin.

Wider Implications for Michigan Utility Regulation

Attorney General Nessel has been vocal about what she describes as a pattern of utilities “gaming” the regulatory system—submitting hike requests in quick succession before the effects of the last increases can be measured.

This latest case is emblematic of that trend. “They’ve done exactly what we knew they would,” Nessel said of Consumers’ June filing, referencing their March announcement, which her office had flagged months earlier.

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