Consumers Energy Files New Rate Hike Request Just Seven Days After Last Increase Approved, Striking Again at West Michigan Households

Utility Company Strikes Again as Michigan Public Service Commission Approves Nearly $800 Million in Annual Revenue Increases Since 2020

LANSING — Consumers Energy has announced plans to file a new electric rate increase request just seven days after the Michigan Public Service Commission approved its last hike. The utility company filed a notice Friday announcing its intent to seek another rate increase on or after June 2, 2026.

The notice was submitted to the MPSC on April 3, seven days after regulators approved a $276.6 million electric rate increase set to take effect May 1. Under current law, this is the first date Consumers Energy is eligible to submit a new request.

It is not yet known how much the company will seek in its upcoming request. In the previous case, Consumers Energy requested a $436 million rate increase and an additional $24.3 million surcharge, which would have raised household rates by 13 percent. A summary of the new request is expected to be filed ahead of the formal application, which the utility said it plans to submit in June.

The rate hike just approved by the MPSC hasn't even taken effect yet, and Consumers Energy is already gearing up to reach back into the pockets of Michigan families, said Attorney General Dana Nessel. Ratepayers don't have a choice in who they buy their energy from, yet our utility companies still choose to make these relentless and unsustainable rate hike demands year after year. Announcing plans to file what we expect to be a new multi-hundred-million-dollar request just seven days after securing a nearly $280 million hike proves how truly broken this system has become.

According to Attorney General Dana Nessel, the commission has approved nearly $800 million in annual revenue increases for Consumers Energy since 2020.

Consumers Energy provides electricity to about 1.9 million customers in Michigan and natural gas to 1.8 million customers statewide. This includes thousands of households across West Michigan communities in Grand Rapids, Kalamazoo, Muskegon, Holland, and Battle Creek.

The Pattern: Continuous Rate Hikes With No Effectiveness Yet

The most recent rate increase also authorizes the utility to earn a 9.9 percent return on equity for new capital expenditure projects, including those related to data center construction. The company argues that beginning this rate case process now is essential to securing approval for the 2027 Reliability Action Plan and making timely, thoughtful investments in 2027 to maintain safe, reliable, and cost-effective service.

Consumers Energy released the following statement in response to Attorney General Nessel's comments Monday:

We announced in March we were going to start the process for our next case. While the Attorney General continues to focus on inflammatory headlines, we continue the work of securing the grid and improving reliability for customers. Michigan's rate-setting process is open and transparent, with a nearly year-long timeline that includes opportunities for public and stakeholder input. Beginning this process now is essential to securing approval for the 2027 Reliability Action Plan and making timely, thoughtful investments in 2027 to maintain safe, reliable, and cost-effective service. Along the way, 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 emphasizes proactive system maintenance and reliability investments and files regular rate requests rather than waiting several years, when increases can be harder for customers.

The company's response does not address the fact that the previously approved rate increase has not yet taken effect. The 2027 Reliability Action Plan and associated investments are not yet approved by the commission.

Local Impact on West Michigan Households

For West Michigan families, the impact is direct and immediate. The $276.6 million rate increase that was approved represents an 8.9 percent hike for Consumers Energy's electric customers. This increase affects thousands of households that rely on electricity for heating, cooling, refrigeration, and basic daily needs.

West Michigan communities served by Consumers Energy include:

• Grand Rapids — Home to over 200,000 Consumers Energy customers
• Kalamazoo — Where families face higher utility bills amid cost-of-living pressures
• Muskegon — Where the utility serves residential and commercial customers
• Holland — Where rate increases compound other local economic challenges
• Battle Creek — Where households struggle with budget constraints

Political Response: Bipartisan Concern Over Utility Practices

Michigan lawmakers are proposing various solutions to address high energy rates. Democrats have focused on a ratepayer bill of rights that would require utilities to file a rate plan covering three years, rather than one year, allowing customers to hold the same rate over multiple years.

Sen. Kevin Hertel, a Democrat from St. Clair Shores, put forth Senate Bill 768 in January to require utilities to file a rate plan that would cover three years, rather than one, allowing customers to hold the same rate over multiple years.

House Republicans are also pushing forward on efforts to roll back past rate increases while eliminating the state's clean energy laws. Rep. Steve Frisbie, a Republican from Battle Creek, one of the lawmakers working on the plan, argued that the energy standard, which includes benchmark goals of 50 percent clean energy by 2030 and 60 percent by 2035, is driving the increase in energy costs.

A report from Lazard, a multinational asset management firm based in the United States, found that unsubsidized wind and solar energy remain the most cost-effective forms of new-build energy. Another report from the International Renewable Energy Agency found that around 91 percent of utility-scale renewable energy projects were more cost-effective than fossil fuel alternatives.

Michigan House Democrats previously put forth their own regulations on energy utilities, calling for a ratepayer bill of rights focused on outage compensation, energy rates, ensuring ratepayer funds are not used on CEO bonuses or other luxuries, among other changes.

What Happens Next

Attorney General Nessel said she will scrutinize every penny of the upcoming filing. Her office's intervention is no longer enough to address continuous increases to residents' energy prices, according to Nessel, who called on the Legislature to come together and find a bipartisan solution.

A summary of the new rate request is expected to be filed ahead of the formal application, which Consumers Energy said it plans to submit in June. The formal application will undergo the standard MPSC review process, which includes public comment periods and stakeholder input opportunities.

The city of Lansing recently announced a summit on reducing energy costs to address concerns from local residents and businesses. The event is expected to bring together utility regulators, community leaders, and policy makers to discuss ways to manage rising energy prices while maintaining grid reliability.

For West Michigan families, the question remains whether the state can find a solution that addresses the utility's need for capital investment while protecting households from continuous rate increases that outpace inflation and wage growth.

Sources:

• Attorney General: Consumers Energy Announces Another New Rate Hike Case 7 Days After Last Rate Hike Approved — https://www.michigan.gov/ag/news/press-releases/2026/04/06/consumers-energy-announces-another-new-rate-hike-case
• Consumers Energy announces plan for new rate hike days after $276.6M approval — https://www.wilx.com/2026/04/06/consumers-energy-announces-plan-new-rate-hike-days-after-2766m-approval/
• Michigan Attorney General calls for action as Consumers Energy seeks another rate increase — https://patch.com/michigan/across-mi/michigan-attorney-general-calls-action-consumers-energy-seeks-another-rate