Lansing, Michigan, June 4, 2026, 13:03 EDT
Consumers Energy is seeking approval from Michigan regulators for a $456 million yearly electric rate hike, a move that prompted Attorney General Dana Nessel to say she will intervene. If approved, the case could boost residential power bills by 9.8%. The Michigan Public Service Commission will decide how much of the rate increase will fall on customers.
The filing stands out now because it comes right as summer peak rates begin and right after another Consumers Energy hike went live. The utility’s summer time-of-use plan charges $0.245 per kilowatt-hour on weekdays from 2 p.m. to 7 p.m. through Sept. 30, while off-peak use costs $0.104.
Consumers Energy was approved to collect an extra $276.6 million from electricity customers as of May 1, after a March decision by the MPSC, the attorney general’s office said. Residential rates went up 8.9%. The commission has signed off on almost $800 million in annual revenue hikes for the utility since 2020.
Consumers isn’t just after higher base rates. Nessel’s office said the utility is proposing a $25 million surcharge for a year, $52 million over three years to cover storm restoration, plus wants to expand the Investment Recovery Mechanism. That’s the system regulators allow for charging some capital costs to customers.
Consumers is also asking to boost its allowed return on equity by 0.35 point to 10.25%, according to Michigan Public. That’s the maximum profit rate the utility can earn for shareholders.
Consumers says new funding would help shore up an aging grid battered by storms. Before the filing, Greg Salisbury, senior vice president of electric distribution, said in a May 27 statement the 2027 Reliability Action Plan aims for “fewer outages” and quicker restoration. The plan calls for more tree clearing, burying 50 miles of power lines, and installing sensors and automation. Consumers Energy
Matt Johnson, who handles media relations for Consumers, told Michigan Public the utility looked at where customer funds would be most effective, and said 75 cents of each customer dollar is used to bolster the electric grid. Projects from the company are set to include tree clearing, putting lines underground and tech upgrades aimed at predicting outages.
Nessel pushed back on the utilities. “Consumers Energy and DTE keep demanding more and more money,” she said. She accused the company of including “unsupported, inflated costs” in its requests, and said higher bills are squeezing families and businesses. Michigan
Both sides point to past performance. Last year, Michigan regulators told Consumers Energy and DTE Electric to follow audit recommendations. Regulators called for better vegetation management and replacing equipment when needed, not just by age. The audit showed both utilities had below-average restoration times.
David Stevenson, director of energy and environmental policy at the Mackinac Center for Public Policy, told Michigan Public that Michigan’s grid is aging and the state is experiencing a “cost reaction” from mandates. He said utilities often get approvals 30% or 40% under their original rate requests, so the number filed isn’t always the number approved. Michigan Public
Consumer advocates disagree. Matt Bandyk, senior consultant at Five Lakes Energy and a Citizens Utility Board of Michigan rate-case advisor, told Michigan Public that Consumers still “has a lot of work to do” on reliability. He said years of neglecting the grid mean customers are now footing the bill for needed upgrades. Michigan Public
Any impact on customers is likely years out. FOX 17 said the MPSC has a deadline in April 2027, while WWMT reported the increase would start May 1, 2027. Consumers has estimated that a typical household paying $155 per month could see bills rise by about $13 if the application goes through.
The case lands as Michigan utilities keep making rate filings. DTE Electric in April asked for a $474 million hike. Nessel’s office has tracked open cases for DTE gas, Consumers gas, SEMCO Energy Gas, and Upper Peninsula Power. That includes DTE’s electric rate request.
The final number could end up far from what’s requested. In March, regulators slashed Consumers’ request to $276.6 million from $436 million. For 2027, what the utility gets will hinge on whether it can justify costs, if watchdogs lower forecasts, and on how much pushback there is over affordability.
