Michigan Attorney General Challenges Consumers Energy Rate Hike Strategy

Michigan Attorney General Dana Nessel announced her office will intervene in a new rate hike case after Consumers Energy signaled its intent to seek another natural gas price increase on or after December 18, 2026. This announcement follows the October 15 approval by the Michigan Public Service Commission of a $139.2 million annual increase, which represents a 4.3% hike for typical residential customers and a 9.8% return on equity for the utility.

Nessel criticized the utility for filing successive applications, arguing that customers bear the financial burden of the staff required to craft these massive proposals. She called on the commission to require utilities to track the specific costs associated with rate hike cases to provide transparency on how much customers are paying for the process.

Consumers Energy defended its approach, stating that filing smaller, more frequent requests keeps bills more predictable and manageable than waiting years for larger increases. The company intends to use the funds from the October 15 hike, which takes effect in November 2026, to update pressure facilities, add technology, and replace pipelines and service lines. Businesses are expected to see an estimated monthly increase of $25.29 under the current approval.