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Why do utilities request rate increases, and how does the MPSC review them?
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No. Most cost increases passed on to customers cover higher expenses for fuel, equipment, labor, and system upgrades, not higher profits.
The Michigan Public Service Commission reviews each utility request in detail and can approve, deny, or reduce cost increases. Utilities must show proof that proposed costs are reasonable and prudent. From 2020-2026, the MPSC has authorized rate increases of 4.9%, below the average rate of inflation.