Skip Navigation
LARA: Michigan Department of Licensing and Regulatory AffairsMichigan.gov: Official Web Site for the State of Michigan
Michigan.gov Home
close print view

MPSC Authorizes Consumers Energy Company to Increase Its Electric Rates By $118.5 Million


Contact:  Judy Palnau, 517-241-3323
Agency:  Michigan Public Service Commission

June 7, 2012 - The Michigan Public Service Commission (MPSC) today authorized Consumers Energy Company to increase its electric rates by $118,475,000 annually, effective June 8.  That amount is 39 percent below what the utility requested.

As a result of today's order, a residential customer using 500 kilowatt-hours of electricity a month will see an increase of $4.28 on their monthly bill (over self-implemented rates).

Consumers Energy on June 10, 2012 filed an application requesting a $195 million rate increase and other relief. The utility on Dec. 8, 2011 self-implemented a rate increase of $118 million.  The final amount approved today ($118,475,000) is $475,000 above the self-implemented amount and represents an increase of 3.3 percent over the rates set in its previous electric rate case (Case No. U-16191).

A fact sheet with details follows: 

Consumers Energy Company

Case No. U-16794

Commission Order Fact Sheet

 

1.  Commission order date:  June 7, 2012

 

2.  Revenue increase granted:  $118,475,000, jurisdictional

 

3.  Rate of return on common equity:  10.3 percent

 

4.  Debt to equity ratio:  48.11 percent debt; 51.38 percent common equity

 

5.  Overall rate of return:  6.6973 percent

 

6.  Requests for the Uncollectible Expense True-Up Mechanism and Choice Incentive Mechanisms, known as trackers, were denied.

 

7.  Development and deployment of Phase 2 of the Advanced Metering Infrastructure program was authorized.

 

8.  The methodology for allocating production plant costs was changed from a system that uses peak demand for 12 months to one that uses peak demand for four summer months.

 

The MPSC is an agency within the Department of Licensing and Regulatory Affairs.

 

Case No. U-16794

 

For more information about LARA, please visit www.michigan.gov/lara.  Follow us on Twitter www.twitter.com/michiganLARA, "Like" us on Facebook or find us on YouTube www.youtube.com/michiganLARA.

 

###

 

Related Content
 •  Arthur L. Rathburn's Mortuary Science License Permanently Revoked
 •  MPSC Grants License to United Energy Trading, LLC as an Alternative Gas Supplier
 •  Johnson Technology, Inc. Receives MIOSHA's Highest Recognition Award of their Workplace Safety and Health Excellence
 •  Profit Corporation 2014 Annual Reports Due On or Before June 30; LARA's Corporations, Securities & Commercial Licensing Bureau Sends Notice to Resident Agents
 •  Madison Heights Physical Therapist Summarily Suspended
 •  Westland Pharmacist Summarily Suspended
 •  MPSC: Updated Law Improves Safety of Underground Digging Practices, Gives MPSC New Enforcement Authority
 •  MPSC Sets Expedited Schedule for Hearing on Michigan Gas Utilities' Request to Establish a Temporary Gas Cost Recovery Factor
 •  MPSC Approves Optional Energy Efficiency Program and Surcharge for Metered Streetlight Customers, Making Them Eligible for Energy Savings
 •  Technology and Long Term Care the Focus of Today's Joint Provider Surveyor Training Conference in Grand Rapids
 •  Spring Thaw Brings Ice Warning from State Fire Marshal; Stay off all lakes, ponds, and rivers!
 •  Office of Regulatory Reinvention Issues Recommendations for Streamlining Rulemaking Process
 •  MPSC Sets Expedited Schedule for Hearing on Consumers Energy's Request to Establish a Temporary Gas Cost Recovery Factor
 •  MPSC Approves Three Settlement Agreements Authorizing the 2014 Power Supply Cost Recovery Factors for Three Electric Cooperatives
 •  MPSC Approves Rate Increase for Members of Michigan Movers Association
 •  MPSC Directs Four Natural Gas Utilities to Participate in Collaborative on the Creation of a Gas Choice Price Comparison Website
 •  Grand Rapids Pharmacist Loses License
 •  Litchfield Nurse Summarily Suspended
 •  Kentwood Pharmacist Loses License
 •  Caledonia Pharmacist Loses License
QR code

Michigan.gov Home
Michigan NewsMichigan.gov Survey


Copyright © 2001-2014 State of Michigan