The Michigan Public Service Commission (MPSC) has approved a settlement in Consumers Energy Company’s natural gas rate case in which the Company sought a rate increase.
State Attorney General Dana Nessel intervened in the case and helped secure a 55% reduction in the final requested rate increase from $175 million to $95 million and an elimination of an initially requested $2-per-month increased service charge for all residential and some commercial customers.
Consumers Energy filed its request seeking an annual increase in revenues of approximately $212 million with the MPSC last December.
The attorney general filed testimony arguing that, based on current rates, Consumers Energy should only receive a rate increase of approximately $52.3 million, adjusted to $52.7 million after further review.
Nessel also opposed the company’s proposed $2 increases to monthly service charges for residential and small commercial customers.
In response to issues raised in testimony by other parties including the attorney general, the Company reduced its requested rate increase to $175 million.
The settlement provides the utility with sufficient revenues to provide its customers with safe and reliable natural gas service and to perform necessary repairs and upgrades to its infrastructure at more reasonable rates than projected by the company.
Consumers Energy abandoned the proposed increase in monthly service charges as part of the settlement. The settlement results in an overall rate increase of 4.0% but only an average rate increase of 3.9% for residential ratepayers.
Consumers Energy provides electricity to approximately 1.9 million customers throughout Michigan and natural gas to 1.8 million customers across the state.
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