Consumers Energy requests $240M hike on gas customers

The Michigan Attorney General is intervening in a new case involving Consumers Energy requesting an increase in gas rates.

Dana Nessel has filed an opinion in the case before the Michigan Public Service Commission. Consumers have asked for a 10% hike on gas customers.

Big picture view:

Consumers Energy is looking for a $240 million increase in its gas rates, which would come out to approximately an 8% increase for residential customers. 

The MPSC approved a previous hike from Consumers three months earlier, authorizing a $157.5 million increase in rates. 

This is the fourth year in a row that the utility has asked for an increase.

Consumers Energy sells gas to 1.8 million households in Michigan, including in Southeast Michigan.

The original filing is available here.

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What they're saying:

Nessel said the public service commission has repeatedly authorized reduced increases compared to what Consumers has asked for.

"Consumers Energy has consistently filed these rate hike requests filled with unjustifiable costs, and my office has consistently intervened to ensure any unfair or indefensible costs are not foisted onto its customers," she said. "This happens over and over again and amounts to millions of dollars. My office will once again thoroughly review this latest request, which – based on nearly every past experience with Consumers Energy – will undoubtedly contain many of the same unjustified and overstated costs we’ve seen time and again from its incessant rate hike requests."

The other side:

Consumers Energy says it will "stand by our natural gas rate request."

Spokesperson Megan Kirk with Consumers Energy released a statement saying:

"(We) will demonstrate to the Public Service Commission that our proposals are needed to continue heating homes and businesses safely, reliably and affordably. Our customers’ rates today are below the state, Midwest and national average, and we will continue to work actively to squeeze every dollar out of our system for the well-being of our customers."

The Source: A news release from the Michigan Attorney General and a MPSC filing were cited for this story. 

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