Consumers Energy Gas Rates to Increase by $4.44 Per Month

The Michigan Public Service Commission (MPSC) has approved a $157 million natural gas rate hike for Consumers Energy, impacting residential customers starting in November.This decision follows a review of the utilityS initial request and subsequent revisions.

Impact on Residential Customers

Residential customers will see an average increase of $4.44, representing a 6.88% rise in their monthly bills. The approved increase is less than the original $248 million request submitted in December 2024,which was later adjusted to $217 million.

details of the Approved Rate Increase

The approved rate increase carries a return on common equity of 9.8% and an overall rate of return of 5.99%. These figures represent the financial return Consumers Energy is authorized to earn on its investments in gas infrastructure.

concerns from the citizens Utility Board

Amy Bandyk, executive director of the Citizens Utility Board (CUB), expressed concerns that the reduction from Consumers Energy’s original request wasn’t substantial enough. She argues that Michigan ratepayers are facing increasing financial strain due to expanding investments in the gas system.

“Michigan ratepayers cannot afford the expanding investments into the gas system that our utilities are planning over coming decades,” Bandyk stated in an email.

Growing Infrastructure Investments by Michigan Gas Utilities

A report released by the Citizens Utility Board this year highlights a meaningful increase in infrastructure investments by Michigan’s gas utilities – Consumers Energy,DTE Energy,and SEMCO Energy Gas Company. The report indicates that these investments have tripled over the past decade.

Key Findings from the CUB Report:

• Michigan gas utilities have dramatically increased capital expenditures.
• Consumers Energy, DTE Energy, and SEMCO Energy Gas Company are all contributing to this trend.
• The CUB report questions the affordability of these ongoing investments for Michigan ratepayers.

Looking Ahead

the approved rate hike reflects a balance between allowing Consumers Energy to maintain and upgrade its gas infrastructure and protecting consumers from excessive cost increases. However, the CUB’s concerns about the long-term affordability of continued infrastructure investments suggest that this issue will remain a key focus for consumer advocates and regulators in the years to come.

FAQ

Q: when will the rate increase take effect?

A: The rate increase will be reflected in customer bills starting in November.

Q: How much will my bill increase on average?

A: The average residential customer will see an increase of $4.44 per month.

Q: What is the Citizens Utility Board?

A: The Citizens Utility Board is a non-profit association that advocates for the interests of Michigan utility consumers.

Q: Where can I find more information about the CUB report?

A: You can find the full report at https://cubofmichigan.org/reports/investor-owned-utility-gas-distribution-capital-expenditure/

Publication Date: 2025/09/30 22:05:42