Consumers Energy to increase electric rates in Michigan

Consumers Energy, a major utility in Michigan, is set to raise electric rates by approximately $154 million. Nearly 2 million customers will see an increase starting in early April. The increase means that the average household bill will rise by about $2.78 per month, according to state regulators. The rate hike was approved by the Michigan Public Service Commission. Regulators noted that much of the additional revenue will help improve the utility's grid and reliability. Consumers Energy has struggled in recent years to keep power consistently available during storms. The commission's chair, Dan Scripps, emphasized the need for effective and cost-efficient improvements. Consumers has committed to trimming trees that threaten power lines, a common cause of outages. The utility aims to regularly trim its more than 90,000 miles of lines every seven years. However, regulators urged the company to consider shortening that interval to four years, as indicated by earlier studies on power reliability. The rate increase follows a lengthy review process involving various stakeholders, including environmental groups and businesses. Consumers Energy had initially requested a much larger increase of $303 million. Michigan Attorney General Dana Nessel criticized the utility for its frequent rate hikes, stating that customers are unjustly burdened. Funding from the rate hike will also support reliability projects, inspections, and maintenance. Additional investments will focus on improving services for communities that face frequent outages as well as enhancing the electric vehicle charging rebate program. The energy company is also reviewing its hydroelectric dams, which could influence future rates. A separate natural gas rate increase is pending for later this year. The new electric rates are set to take effect on April 4.