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MPSC Approves $139 Million Rate Hike for Consumers Energy
October 15, 2026
LANSING — Today, the Michigan Public Service Commission (MPSC) authorized Consumers Energy to raise its natural gas rates yet again, by 4.3% for a typical residential customer, allowing the monopoly utility to raise an additional $139.2 million per year from its bill-paying customers. The MPSC also approved a 9.8% return on equity, the utility’s profit margin on capital investments. Consumer Energy had sought permission to raise rates by 10%, seeking to raise $240 million more annually across all customers. Michigan Attorney General Dana Nessel urged the MPSC to slash the request by more than half, arguing that Consumers Energy should be allowed to raise rates by no more than 3.5%, a decrease to the requested rate hike that would have saved utility customers more than $146 million.
Consumers Energy announced its rate hike request in October 2025 (PDF), less than a month after it received Commission approval to raise its natural gas rates by $157.5 million. The Department of Attorney General found several instances within Consumers Energy’s rate hike application where Consumers Energy inflated capital spending projections and included for themselves unreasonable profit margins. The Attorney General also called on the MPSC to not increase monthly service charges for Consumers Energy customers and to reject the utility’s request to force its ratepayers to pay for the utility’s lost revenue during warmer months and sales losses through a Revenue Decoupling Mechanism.
“Utility customers across the State, whether they pay their bill to Consumers Energy or DTE, ask all the time when their energy bills will stop climbing,” said Attorney General Nessel. “And it’s clear that the answer is never. For nearly eight years my office has worked doggedly to curb these utility rate hikes, and in turn the cases have only grown. Change must come, to our current system of annual on-demand rate hikes and our regulatory structure, but the only changes we’ve seen are fatter rates and heavier bills.”
The Attorney General has saved Michigan consumers more than $4.6 billion by intervening in utility cases before the MPSC. Recent rate hike requests from DTE and Consumers Energy have included such inappropriate costs as private jet travel for staff, millions in executive incentive compensation tied to maximizing shareholder returns, and other unsupported expenditures that could not be demonstrated to be reasonable or prudent. Other rate hike cases currently open before the MPSC include DTE’s electric rate hike request (U-22046) and Upper Peninsula Power Company’s electric rate hike request (U-22032).
Consumers Energy sells electricity to approximately 1.9 million customers throughout Michigan and natural gas to 1.8 million customers across the state.
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