Michigan AG seeks decrease in Consumers Energy natural gas rate case

While calling for reforms to the regulatory body overseeing Michigan’s energy companies, Attorney General Dana Nessel on Thursday announced that her office would be seeking a reduction in a natural gas rate case recently-filed by Consumers Energy.

In her request, Nessel asked the Michigan Public Service Commission for a 61% reduction to the company’s request to raise its energy rate by $240 million. In a statement, she said the request included several instances where the company inflated its capital spending projections and included unreasonable profit margins for the company. 

She also asked the commission not to increase monthly service charges for customers, and to reject the utility’s request for a revenue decoupling mechanism, which Nessel said is intended to force ratepayers to cover lost revenue during summer months and lost market sales.

“As always, Consumers Energy has stuffed its rate hike request with ridiculous, overstated costs,” Nessel said in a statement. “By now, we should all be exhausted by this predictable pattern of greed, and complete disregard for the Michigan utility customer. We already know how this process ends. The MPSC will almost certainly split the difference between our recommendation and Consumers Energy’s rate hike request to appease the utility, but where does that leave families bled for more every year?”

She noted that the MPSC has allowed nearly $800 million in annual increases for Consumers Energy since 2019, arguing that the state’s system around energy rates is “fundamentally broken.”

Brian Wheeler, a media relations specialist with Consumers Energy, sent Michigan Advance a statement on the request, saying that the utility understood the concerns of its customers amid rising costs of living.

“These investments are essential to delivering safe, secure, efficient, and cleaner natural gas service, while responsibly managing costs to keep energy affordable for customers. Our average residential gas bills are about 12 percent below what they were in 2022. This reflects our dedication to keeping energy costs manageable for families while continuing to prioritize the long-term needs of the community we serve,” Wheeler said. “We thank the MPSC and their staff for their continued careful review of our rate case and their recommendations for investments that support our goal of providing natural gas safely, effectively, and affordably. We will continue to work with stakeholders in an open and transparent ratemaking process with the Michigan Public Service Commission.”

Matt Helms, a spokesperson for the commission, declined to comment, as Nessel’s statements relate to an active rate case.