Lansing, Michigan, March 31, 2026, 08:07 EDT
Starting May 1, electricity bills will climb for Michigan residents after state regulators signed off on a $276.6 million rate hike for Consumers Energy. The Michigan Public Service Commission estimates that a typical household—using 500 kilowatt-hours each month—can expect an extra $6.46 on their bill, a 6.1% jump.
The decision carries weight: Consumers powers roughly 1.9 million homes and businesses statewide. The rate hike gives the utility fresh funds for another year of grid upgrades aimed at reducing how long and how often the lights go out. Under existing rules, the company could ask for yet another hike as soon as June, adding to household costs before the impact of this round is even felt.
This week, talk about whether Michigan utilities ought to bury more power lines has picked up again after storms hit the northern part of the state. Consumers is moving ahead, with plans to put more than 10 miles of line underground in 2024, according to Bridge Michigan. Greg Salisbury, the company’s senior vice president of electric distribution, pegged the price tag at roughly $400,000 per mile.
Regulators took a knife to the request. According to the MPSC, nearly 40% of Consumers’ proposed outlays got axed—some projects just didn’t have enough backing or evidence they were prudent. Attorney General Dana Nessel’s office pointed out that the company’s original ask was a 13% rate hike: $436 million plus a $24.3 million surcharge. The commission’s final order will mean residential power bills climb 8.9%, Nessel’s office said.
Consumers says the cash infusion is headed toward ramped-up tree trimming, sturdier poles, more underground wiring, and tech that can cut outage times, as well as new physical and cyber safeguards for the grid. Salisbury expects the upgrades to mean “fewer and shorter power outages.” PR Newswire
Vegetation management is getting a major injection of cash. The commission signed off on $186 million for line clearing, which includes cutting back trees and brush near power lines. Consumers wants to speed up work on its low-voltage grid—aiming to clear everything every five years by 2030-31, a big move from the roughly 10-year pace now. The MPSC noted that 93% of customers who lost power in 2024 got service back within 24 hours, compared to 87% a year ago. Commissioner Shaquila Myers called the decision an example of “proactive infrastructure improvements” designed to head off more expensive emergency fixes down the line. Michigan
Consumers spokesperson Trisha Bloembergen told WWMT the utility hasn’t yet hit its target of getting power back on for customers within 24 hours after outages. “We’re not there yet,” she said. According to Bloembergen, the latest investment is aimed at narrowing that gap. WWMT
Nessel slammed the move, saying it piles more pressure on families and calling it just the latest chapter in a “never-ending cycle of rate hikes.” According to her office, the new rates kick in May 1—coming on the heels of last year’s $154 million boost for electric customers—and push Consumers’ total approved annual revenue hikes since 2020 close to $800 million. Michigan
This isn’t just about Consumers. According to Nessel’s office, DTE Energy has put in notice for another electric rate filing, scheduled for April. Michigan’s top two electric providers keep turning to rate cases as a way to fund reliability upgrades.
Regulators insist affordability remains a focus. According to the MPSC, in 2024 the average Michigan monthly electric bill hit $119.31—still under the national average of $142.16.
Even with more funding in play, the dispute may not end here. Eric Paul Dennis, research associate on infrastructure policy at the Citizens Research Council, put it bluntly: “no option will be one hundred percent reliable.” As a precaution, the commission is demanding Consumers prove later that cash went toward the designated projects. If not all of it gets used, customers could see some money come back their way. Bridge Michigan
Consumers is set to file its 2027 Reliability Action Plan in June, so fresh debates on outages, undergrounding, and monthly bill impacts could kick off before the latest rate hike even lands on customers’ bills.
