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AG Nessel Helps Secure Nearly 50% Rate Hike Reduction in Public Service Commission Settlement with Natural Gas Provider
August 30, 2023
LANSING – Today, the Michigan Public Service Commission (MPSC) approved a settlement in Michigan Gas Utilities Corporation’s (MGUC) rate increase request after Michigan Attorney General Dana Nessel, alongside the Citizens Utility Board of Michigan (CUB), intervened to secure a nearly 50% reduction in the requested rate increase from $19.1 million to $9.9 million as well as a reduction in the corporation’s return on equity from 10.4% to only 9.8%, which is the lowest in the state for investor-owned utilities.
In March, MGUC filed this request to increase its gas rates by $19,114,362 along with a request for a 10.4% return on equity. If approved as filed, the rate increase for residential customers would have been approximately 11.76%. MGUC’s last rate increase was approved two years ago.
“Similar to the large rate cases impacting millions of Michigan consumers, my office aggressively fights for, and wins, reduced energy costs for all utility customers across this state,” said Nessel. “My office and our partners were able to slash this requested rate increase almost in half. Utility customers who would have faced the almost twelve percent rate hike, as the utility requested, will now only bear an effective increase of 2% per year since the last rate increase from their natural gas provider.”
"This settlement provides much-needed rate relief for MGU customers. Michigan residential customers spend more on natural gas than their neighbors in Ohio, Indiana and Wisconsin do, as shown by data from CUB's Utility Performance Report," CUB Executive Director Amy Bandyk said. "The lower costs for residential customers thanks to this settlement are a step in the right direction."
The Citizens Utility Board of Michigan (CUB) is a nonpartisan Michigan non-profit dedicated to making utility costs more affordable for Michigan residents.
Since taking office, the Attorney General has saved Michigan consumers more than $2.4 billion by intervening in utility cases before the MPSC.
More information on this case can be found on the Commission’s website under docket number U-21366.