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AG Nessel Helps Secure a 40% Reduction in the Amount of Consumers Energy’s Gas Rate Increase
July 13, 2022
LANSING –Michigan Attorney General Dana Nessel continues to advocate for reasonable utility rates for Michigan consumers as demonstrated by her participation in the Consumers Energy Company recent gas rate case before the Michigan Public Service Commission (MPSC), culminating in a settlement that reduces the Company’s requested rate increase by over $100 million. An order embodying the settlement was recently approved by the MPSC.
Consumers Energy filed its request seeking an annual increase in revenues of approximately $278.4 million with the MPSC in December 2021. Unopposed, the Company’s request would result in a 12.5 percent increase in rates for residential ratepayers. The Attorney General filed testimony with the Commission seeking to reduce the rate increase by $140 million based on her review of the filing.
The settlement agreement provides Consumers Energy with sufficient revenues to provide its customers with safe and reliable natural gas service and to perform necessary repairs and upgrades to its infrastructure but at more reasonable rates than projected by the Company. In addition, the settlement continues the prohibition on the Consumers Energy recovering costs related to the fire at the Company’s Ray Station consistent with the Commission’s orders in previous cases unless the Company prevails in a pending appeal before the Court of Appeals. Finally, it omits approval of other proposed expenditures and costs for projects that are of questionable benefit to the Company’s customers. A typical residential customer will see a 5.8 percent increase in the monthly bill. This settlement is a continuation of the Attorney General’s efforts to seek and obtain significant rate relief for utility customers.
“Michigan consumers cannot afford a double-digit energy cost increase at a time when household budgets are already strained,” said Nessel. “I am committed to continuing to use the resources of my office to ensure increases are limited to what is absolutely necessary to help ensure reliability.”
Since taking office, the Attorney General has saved Michigan consumers nearly $2 billion by intervening in utility cases before the MPSC. This settlement reaffirms her commitment to affordable energy for consumers.
Consumers Energy provides electricity to approximately 1.9 million people throughout Michigan and natural gas to 1.8 million customers across the state.