News Story

Consumers Energy makes 6th rate hike request in 6 years

Monopoly energy company asks for a historic rate increase three months after dipping more into consumers wallets

Consumers Energy’s request for a $436 million rate increase is one of the largest requests on record and comes just three months after a $154 million rate hike took effect.

The regional monopoly provides natural gas and electricity to 6.8 million residents. Michigan Capitol Confidential reported in April on Consumers’ plan to request another rate increase from the Michigan Public Service Commission. The company’s 2024 request started out at $325 million but ended up at $154 million, resulting in a 2.8% increase for residential customers.

“Consumers Energy is committed to delivering safe, reliable and affordable energy to nearly 2 million homes and businesses,” said Katie Carey, director of media relations for CMS Energy & Consumers Energy, in an email to CapCon.

She added that the company understands many of their customers struggle to pay bills.

CMS Energy, the company that owns Consumers Energy, had a 13.23% increase in profits year-over-year in 2024, according to Macrotrends.

It had $993 million in net income available to shareholders the same year, according to the company’s annual report.

This latest filing marks the largest electricity rate hike proposed by Consumers Energy in years, according to previous filings. If approved, the increase would go into effect in May 2026.

Recent major rate-hike requests include:

CapCon reported in 2018 that state regulators, appointed by the governor, allowed the company to raise prices nine times since 2005. The rate increases over that period totaled $912 million.

Jason Hayes, director of energy and environmental policy at the Mackinac Center for Public Policy, has voiced concerns over the environmental costs of wind and solar infrastructure Consumers is building out.

He told CapCon in March that since the state killed electricity choice in the state in 2008, residential rates have surged 75%. Rates in the state went from being 10% below the national average to being 10% above it.

Attorney General Dana Nessel filed a notice of intervention opposing the request. In a June 2 press release, Nessel called the proposed hike “likely the largest in decades” and criticized Consumers Energy for filing the new request just seven days after its last increase went into effect.

The proposal would raise rates by about 9.2% for all customers and 13.3% for households, according to Nessel.

The company, said Nessel, is seeking to recover $24 million in deferred distribution costs from its “bill-paying customers” through a separate surcharge.

Nessel did not respond to a request for comment.

About 37 states have cheaper electricity than Michigan, CapCon has reported.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.