LANSING, Mich. (Michigan News Source) – Consumers Energy customers may be shocked to see prices climbing, after a Wednesday decision by the Michigan Public Service Commission approved a settlement to allow the energy company to raise its rate by $95 million. 

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The increase will start Oct. 1, and the average resident using 100 centum cubic feet of natural gas can expect a monthly increase of $4.20 according to MPSC. 

Originally the company requested a $212 million increase with the MPSC in December 2022, which would have resulted in a 7.8% rate increase for customers, however the main opposition was from the office of the Attorney General which helped drive down the final request. 

“My office takes very seriously its commitment to defend Michigan consumers, and often that means defending utility customers from exorbitant and constant rate hike requests before the state,” said Nessel. “We are defending the pocketbooks and household ledgers of Michigan consumers throughout the year from our largest energy providers. The settlement announced today saves ratepayers millions, slashes the rate hike demand in half, and completely blocked an unnecessary intended service fee increase that otherwise would have landed on the utility bills of every residential Consumers Energy natural gas customer in Michigan.”  

Part of the deal involves investing more in infrastructure projects. 

“The company is authorized to spend $214 million on its Enhanced Infrastructure Replacement Program on a minimum of 110.8 miles of installed main replacement through Sept. 30, 2024,” according to MPSC officials.  

Consumers Energy’s most recent gas rate increase of $170 million was approved in July 2022, while Michigan Gas Utilities’ most recent increase of $9.25 million was approved September 2021, according to MPSC.

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The energy supply company does practice a higher rate of energy use in the summers. 

“As temperatures rise in the summer, so does the demand on the electric grid,” Consumers Energy said in a statement. “With increased demand comes an increase in cost. That’s why on weekdays from 2 p.m. to 7 p.m., June to September, electric rates will be higher – and we encourage you to take advantage of lower-cost energy available at other times of day (“off-peak”).” 

 The commission also approved the Michigan Gas Utilities Corps. to raise its natural gas base rate. 

“The rate increase will be effective Jan. 1, 2024,” MPSC officials said “A typical residential customer using 100 ccf of natural gas monthly will see an increase of $5.10 on their bill, a 6.6% increase.” 

Earlier this week, Gov. Gretchen Whitmer has added Kent and Ionia counties to the state of emergency declaration issued after last week’s severe thunderstorms and tornados that left thousands without power.