Utility Rate Requests Face Pushback in Illinois, Michigan

Michigan Attorney General Dana Nessel is urging state regulators to cut Consumers Energy’s proposed $456 million annual electric rate increase by 53%, which would reduce a planned 9.8% residential rate hike. She also wants the Michigan Public Service Commission to cap the utility’s return on equity at 9.2%, rather than the requested 10.25%, and weigh affordability amid rising customer disconnections. Nessel argues the request includes unjustified costs and points to nearly $800 million in Consumers Energy rate increases approved since 2020, including a $276 million increase approved shortly before the latest request. Consumers Energy says its proposal would fund reliability improvements and maintain residential bills below the national average and those in neighboring states. The commission will review the request and decide what increase, if any, to approve.