by Kyle Davidson, Michigan Advance
On Tuesday, Michigan Attorney General Dana Nessel lambasted Consumers Energy, one of the state’s largest energy companies, laying into the utility for its latest filing announcing its plan to request another rate increase later this year, with the notice coming seven days after its prior increase was approved.
According to Nessel’s office, Michigan’s energy companies can only request rate increases once every 12 months, measured from the day they file their application. Friday’s announcement comes 364 days after the company’s prior announcement. The office further noted that Consumers’ notice, filed Friday, comes one week before their latest 2.8% rate increase is set to take effect.
“By allowing Consumers Energy and DTE to file a new rate hike every twelve months, the State is allowing these billion-dollar businesses to ask for more and more before anyone can even gauge the impact of the previous rate hike,” Nessel said in a statement. “Meaning they’re back asking for more money before anybody knows if their proposed investments made any difference in reliability or affordability for customers.”
Both Consumers Energy and DTE have faced criticism and scrutiny over high electricity rates and poor reliability, with Michigan ranking 9th in the nation in the average number of outage minutes per customer, while facing the 14th highest energy cost burden.
Though Consumers Energy has not indicated how much it aims to raise its rates, Nessel’s office noted the company previously requested an 8.2% increase in 2024 and nearly 5% in 2023. The company sells electricity to approximately 1.9 million customers throughout Michigan and natural gas to 1.8 million customers across the state.
“Consumers Energy just got the green-light to raise electric rates, and one week later they’re back with their hands out before putting any of their new earnings to work for their customers,” Nessel said. “My office will continue to hold Consumers Energy and DTE accountable before the Commission, and expose again and again the unjustifiable costs they try, perennially, to foist upon their bill-paying customers.”
Katie Carey, director of media relations for Consumers Energy said Nessel was wrong on the facts, and that her statement was misleading.
“Consumers Energy has told state regulators we intend to file a rate request no sooner than June 2. We have not made an actual request,” Carey said, with the notice stating the company expects to file its application on or after June 2, 2025.
“As a note, we are required to file the notice following the implementation of the 2016 Energy Law — this is not a new development,” Carey said.
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