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Consumers Energy Announces New Natural Gas Rate Hike Case, Four Days After MPSC Approved $139 Million Hike

LANSING — Yesterday, just four days after the Michigan Public Service Commission (MPSC) approved a $139 million natural gas rate hike for Consumers Energy, the utility company filed a “Filing Announcement,” formally and publicly announcing its intent to seek yet another rate hike— likely to be filed this December. Michigan Attorney General Dana Nessel announced today her office will file to intervene in the case on behalf of the people of Michigan.

The MPSC authorized Consumers Energy to raise its natural gas rates by 4.3% for a typical residential customer on October 15th, 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. While it is not known at this time how many more millions Consumers Energy will seek from its customers in its next rate hike application, in its prior rate hike case, Consumers Energy sought to raise rates by 10%, to raise $240 million more annually across all customers.

“Consumers Energy was approved for a new natural gas rate hike just last week, and before a single new dollar could be spent, they’ve announced their next rate hike,” said Attorney General Nessel. “Major utilities like Consumers Energy and DTE employ entire teams of staff to craft rate hike applications to file one right after another, and their bill paying customers pay all the costs to craft these massive proposals. In the past, we have asked the MPSC to require both companies to track their costs associated with rate hike cases and, as long as their customers are paying for the process, I hope someday soon we’ll know just how much.”

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 Consumers Energy’s electric rate hike request (U-22070), 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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