MPSC approves settlement agreement authorizing Consumers Energy Company to increase natural gas rates by $40 million annually

April 21, 2016

Contact: Judy Palnau, 517-284-8300
Agency: Michigan Public Service Commission

LANSING, Mich. - The Michigan Public Service Commission (MPSC) today approved a settlement agreement authorizing Consumers Energy Company to increase its natural gas rates by $40 million annually. The amount approved is $20 million below what the utility self-implemented in January on an annual basis. A future reconciliation proceeding will determine the amount to be refunded to customers, plus interest.

Residential customers using 100 ccf of natural gas per month will see a decrease of $1.69 on their monthly bills, effective May.

The utility filed an application requesting a rate increase of $84.7 million on July 17, 2015. The amount approved in the settlement is 53 percent below what the utility requested and represents an increase of 1.6 percent for residential customers over the rates set in its last natural gas rate case (Case No. U-17643).

In addition, the settlement:

  • authorizes Consumers Energy to implement a residential customer charge and, for qualifying principal residence customers, an income assistance credit of $11.75 per customer per month, an increase of 25 cents per month over current charges and credits;

  • authorizes continuation of the Enhanced Infrastructure Replacement Program (a gas main replacement program) as approved in Case No. U-17643, for calendar year 2016;

  • approves the revenue decoupling mechanism proposed by Consumers Energy;

  • does not approve the investment recovery mechanism sought by the utility.

The MPSC staff, the utility, the Attorney General, the Association of Businesses Advocating Tariff Equity (ABATE), and the Retail Energy Supply Association (RESA) participated in the settlement. Midland Cogeneration Venture Limited Partnership (MCV) filed a statement of non-objection.

Case Nos. U-17882

For more information about the MPSC, please visit www.michigan.gov/mpsc.

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