Consumers Energy Rate Hike Approved by MPSC

AG: Michigan News

Published May 1st, 2026

Detected March 28th, 2026

Summary

The Michigan Public Service Commission (MPSC) approved a $276.6 million rate increase for Consumers Energy, resulting in an 8.9% rise in residential electricity rates. This decision follows advocacy from the Michigan Attorney General's office, which had argued for a smaller increase. The approved hike is effective May 1, 2026.

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What changed

The Michigan Public Service Commission (MPSC) has approved a significant rate increase for Consumers Energy, allowing the utility to collect an additional $276.6 million in revenue. This represents an 8.9% increase for residential customers and is effective May 1, 2026. While lower than the company's initial request of $436 million plus a surcharge, the approved amount is still substantial and follows a previous $154 million electric rate hike in 2025. The Michigan Attorney General's office intervened, advocating for a much smaller increase, and highlighted the ongoing cycle of rate hikes impacting consumers.

Compliance officers for Consumers Energy must ensure the new rates are implemented by the May 1, 2026 effective date. While the Attorney General's office continues to advocate for ratepayers and scrutinize utility requests, the MPSC's decision is binding. The press release also notes that Consumers Energy is eligible to file its next rate hike request in June 2026, indicating a continuous regulatory process. Affected parties should prepare for potentially higher energy costs and monitor future regulatory filings.

What to do next

Implement the approved $276.6 million rate increase for Consumers Energy customers by May 1, 2026.
Ensure residential electricity rates reflect the 8.9% increase.
Monitor Consumers Energy's eligibility to file for its next rate hike in June 2026.

Source document (simplified)

MPSC Approves $276.6 Million Consumers Energy Rate Hike

March 27, 2026

LANSING – Today, the Michigan Public Service Commission (MPSC) approved yet another rate hike for Consumers Energy customers, allowing the company to collect an additional $276.6 million in revenue from its electricity customers. Consumers Energy initially sought permission to raise rates by 13%. In her filed testimony, Michigan Attorney General Dana Nessel argued for the MPSC to slash Consumers Energy’s rate hike down to 3.5% and called for a nearly 65% cut to the utility's rate hike request. The rate hike approved today will raise residential customer electricity rates by 8.9%.

The approved rate hike is $160 million less than Consumers Energy’s original request, which sought a $436 million rate hike and an additional surcharge of $24.3 million. This was reduced, in part, due to the Attorney General’s continued advocacy on behalf of ratepayers. Today’s approved rate hike will become effective on May 1, 2026, and follows last year’s $154 million electric rate hike. Since 2020, the MPSC has approved nearly $800 million in annual revenue increases for Consumers Energy. Under the current law, Consumers Energy is eligible to file their next rate hike request in June 2026.

"Consumers Energy customers will once again have to brace for higher bills because of the never-ending cycle of rate hikes passed on by the utility,” said Attorney General Nessel. “Unfortunately, this is something we have become accustomed to. Even though my office carefully reviews DTE and Consumers Energy rate hike requests for bloated and unjustified costs, it is ultimately the MPSC who determines how much to approve or how often these rate hikes occur. This process continues to place the burden on ratepayers and demands greater accountability to ensure Michiganders receive the affordability and reliability they deserve. I urge our elected leaders of both parties to reconsider this badly broken system. It’s both unfair and unsustainable for our state.”

Since taking office, the Attorney General has helped save Michigan consumers more than $4.1 billion by intervening in utility cases before the MPSC. Rate hike cases currently open before the MPSC include Consumers Energy’s natural gas rate hike request (U-21981), DTE’s natural gas rate hike request (U-21973), SEMCO Energy Gas Company’s gas rate hike request (U-22002), and Upper Peninsula Power Company’s electric rate hike request (U-22032). DTE has also submitted a filing announcement, announcing its intent to file another electric rate hike in April.

Consumers Energy sells electricity to approximately 1.9 million customers throughout Michigan and natural gas to 1.8 million customers across the state.

MI Newswire Attorney General Press Release Utilities Media Contact:

Danny Wimmer

Press Secretary

agpress@michigan.gov

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