AG Urges Reduction in Consumers Energy’s Electric Rate

LANSING – Michigan Attorney General Dana Nessel is urging the Michigan Public Service Commission (MPSC) to drastically reduce Consumers Energy Company’s pending rate increase request.

The Attorney General  intervened in the company’s request to increase rates with MPSC in March. The request includes an annual increase in revenues of $225 million, which would result in an 8.8% percent increase for residential ratepayers and  a 5.5% increase overall when considering all ratepayer classes – residential, commercial and industrial.

In her testimony, Nessel argues that the company’s request is not only excessive and unnecessary, but that MPSC should reduce rates. The testimony points out that based on current rates, Consumers Energy will receive excess revenue in the amount of $30.7 million and therefore should not receive another rate increase.

Even if the MPSC does not accept the recommendations and approves the Company’s request in whole or in part, Nessel also argued for change in how costs are allocated so that costs are more fairly distributed among customers. Under her testimony, residential customers would only see a 4.8% rate increase versus Consumers Energy’s 8.8% request.

“An 8.8% rate increase during a time when people are struggling with job loss and economic hardships is too much,” Nessel said. “I am fighting this exorbitant rate increase request and asking the MPSC to deny the request and grant a rate decrease. As this state’s chief consumer advocate, I will continue to advocate for all Michigan customers.”

The Attorney General’s intervention in Consumers Energy’s last electric rate case helped save electric customers nearly $154 million, which represented a savings of more than 60% from the company’s originally requested rate increase.

Since taking office, Nessel has saved Michigan consumers over $1 billion by intervening in utility cases before the MPSC.

Consumers Energy provides electricity to approximately 1.9 million customers in Michigan’s Lower Peninsula.

A copy of the Attorney General’s testimony can be found online.