Consumers Energy Seeks $456 Million Electric Rate Increase

LANSING - Consumers Energy has filed a request with the Michigan Public Service Commission, MPSC, to raise electric rates by $456 million, marking the largest rate increase request in more than 20 years and the second year in a row the utility has sought a significant hike.

The application was filed June 2, 2026, the earliest date allowed under Michigan law, which requires utilities to wait at least one year between rate case filings. The request now enters a review process that is expected to last about 10 months, with regulators having until April 2027 to issue a decision. If approved, new rates would take effect May 1, 2027.

Consumers says the increase is needed to continue modernizing and strengthening Michigan’s electric grid, with investments aimed at reducing the frequency and length of power outages. The utility serves nearly 1.9 million electric customers statewide.

If approved as filed, the average residential customer with a monthly electric bill of about $155 would see an estimated increase of about $13 per month, or roughly 9 percent. Actual bill impacts would vary depending on energy usage. Consumers emphasized there are no immediate changes to customer bills while the case is under review.

The request follows a rate increase approved earlier this year that went into effect in May. That increase was originally set at $276.6 million but later adjusted to $216.9 million to correct a calculation error.

Consumers says recent investments have reduced average outage times since 2021, excluding major storm events, and that additional spending on tree trimming, grid automation and underground lines will further improve reliability. The utility is also seeking to recover $52 million in storm restoration costs from severe weather in 2025.

Consumer advocates have criticized the request, arguing that reliability improvements could be achieved at a lower cost and questioning whether previous investments have had enough time to demonstrate lasting results. The rate case will be reviewed by the three governor appointed members of the MPSC, along with input from the Michigan Attorney General’s Office and other stakeholder groups.

A final decision on the proposed increase is expected in spring 2027.