Consumers Energy's rate hike request comes days after $139M increase approved

(FOX 2) - Consumers Energy is looking for a rate hike on natural gas prices less than a week after the public service commission approved a $139 million increase.

The utility provider filed its notice of intent with regulators on Monday, which is required before it can submit its rate request. 

The previous rate hike came out to about a 4.3% bump in monthly payments for natural gas.

Consumers Energy Rate Hike

Big picture view:

Consumers Energy has not said how much more it is asking for in its latest filing, but did say the new rate would last 12 months, ending Oct. 31, 2028.

Utility companies cannot set rates themselves. Instead, they submit a request to increase rates for either natural gas or electricity with the Michigan Public Service Commission.

After making the request, both parties and any other stakeholders weigh in on the case. 

The Michigan Attorney General frequently intervenes in these cases.

The backstory:

Consumers Energy's latest approved hike was authorized by the MPSC on Oct. 15. It included a 4.3% increase for a typical residential customer.

The gas hike request initially came in at $240 million in 2025. The commission's decision of $139 million included a 9.8% return on equity, which is Consumers' profit margin on its investments.

What they're saying:

"Major utilities like Consumers Energy and DTE employ entire teams of staff to craft rate hike applications to file one right after another, and their bill paying customers pay all the costs to craft these massive proposals," state Attorney General Dana Nessel said in a statement. "In the past, we have asked the MPSC to require both companies to track their costs associated with rate hike cases and, as long as their customers are paying for the process, I hope someday soon we’ll know just how much."

The other side:

"Consumers Energy continues to work toward securing our natural gas system and ensuring safety, reliability and affordability for customers. The natural gas rate for Consumers Energy customers has fallen from $11.90/mcf in 2022 to $11.03/mcf in 2025 – or 7%, which means our natural gas rates have come down more than twice as much as rates across other Midwest energy providers," Katie Carey, Director of Media Relations said. "Consumers Energy remains focused on helping our friends and neighbors by offering money‑saving programs and connecting customers with assistance that can help manage bills. To help keep energy bills more predictable and manageable, Consumers Energy files smaller rate requests rather than waiting several years, when larger increases can be harder for customers."

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