Consumers Energy Plans Another Rate Hike Just One Week After MPSC Approves $276 Million Increase

Michigan Utility Files Filing Announcement Seeking Rate Increase On Or After June 2, 2026

Consumers Energy is seeking another electric rate increase just seven days after the Michigan Public Service Commission approved a $276.6 million hike. The utility filed a notice with regulators on April 3, announcing its intent to request authority to increase rates on or after June 2, 2026.

The announcement comes while the previous rate increase has not yet fully taken effect. New rates from the approved increase go into effect May 1, 2026.

Under the approved increase, a residential customer using 500 kilowatt-hours per month will see their bill rise by approximately $6.46, or 6.1 percent, according to the commission.

Attorney General Dana Nessel Pledges Intervention

Michigan Attorney General Dana Nessel stated her office will intervene and scrutinize every penny of the upcoming filing. Nessel criticized the timing of the announcement, calling the situation proof of a broken system.

The rate hike just approved by the MPSC has not even taken effect yet, and Consumers Energy is already gearing up to reach back into the pockets of Michigan families. Ratepayers do not 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, Nessel said in a statement.

Previous Rate Hike History Shows Accelerating Pattern

The announcement comes a week after regulators approved the $276.6 million increase for Consumers Energy customers. The approved increase was about a third less than the companys most recent request of $423 million. It followed a $153.8 million rate increase the MPSC approved for Consumers Energy electric customers in March 2025.

Consumers previously sought a $436 million rate increase and an additional $24.3 million surcharge, which would have increased household rates by 13 percent. The Public Service Commission approved an 8.9 percent increase for Consumers electric customers instead.

According to the Detroit News, Michigan Attorney General Dana Nessel said she will intervene and scrutinize every penny of the upcoming filing, noting the timing of the announcement. The Jackson-based utility serves nearly 2 million electric customers in lower Michigan, including approximately 1.8 million customers in West Michigan.

Legislators Push for Reform

Sen. Kevin Hertel, Democrat of St. Clair Shores, introduced Senate Bill 768 in January, requiring utilities to file a rate plan that would cover three years rather than one. The legislation would allow customers to hold the same rate over multiple years. However, the measure has not advanced.

Rep. Steve Frisbie, Republican of Battle Creek, is working on legislation to roll back past rate increases while eliminating the states clean energy laws. Frisbie 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.

Consumers Energy Responds to Criticism

Katie Carey, Consumers Energy director of media relations, responded to Nessel comments in an email.

Beginning this process now is essential to securing approval of our 2027 reliability action plan. We continue the work of securing the grid and improving reliability for customers. Michigans rate-setting process is open and transparent, with a nearly year-long timeline that includes opportunities for public and stakeholder input.

Consumers Energy emphasized that the companys residential power rates are below the national average. However, the utility also noted that contributing to this is relatively lower power usage in Michigan, a state that relies largely on natural gas for heating.

The companys residential power rates outpace the national average, helping cement Michigan as the priciest state in the Midwest for power costs measured in terms of cents per kilowatt-hour for residential customers.

What This Means For West Michigan

Consumers Energy provides electricity to about 1.9 million customers in Michigan. The utility serves thousands of residential and commercial customers across West Michigan, including communities in Grand Rapids, Kalamazoo, Muskegon, Holland, and Battle Creek.

If Consumers Energy receives approval for its upcoming rate request, it will mark seven straight years of filing for rate increases. Regulators have approved about $800 million in Consumers electric rate hikes during that time.

The companys filing announcement states the requested rate relief will impact customers located in Consumers Energys electric service territory. The filing is based on a projected test year for the 12-month period ending April 30, 2028, utilizing a historical test year of 2025.

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. Rates will not rise again until spring of 2027 at the earliest, since an application takes 10 months to be decided by the Public Service Commission after filing.

Michigan Limits For-Profit Utilities to One Request Every 12 Months

Michigan law limits for-profit utilities regulated by the state to one request every 12 months. The announcement Consumers Energy filed is a required part of the process and does not reveal the size of the incoming request.

If Consumers follows through on its plans to request higher power rates this year, it will mark seven straight years of doing so. The utility emphasizes proactive system maintenance and reliability investments and files regular rate requests rather than waiting several years, when increases can be harder for customers.

Sources:

• https://www.michigan.gov/ag/news/press-releases/2026/04/06/consumers-energy-announces-another-new-rate-hike-case
• https://www.mlive.com/news/2026/04/after-winning-largest-electric-rate-hike-in-years-consumers-energy-gears-up-for-another.html
• https://www.wnem.com/2026/04/06/consumers-energy-announces-plan-new-rate-hike-days-after-2766m-approval/
• https://wrkr.com/consumers-energy-rate-hike/
• https://www.detroitnews.com/story/business/2026/04/06/consumers-energy-planning-another-electric-rate-increase-request/89489983007/
• https://www.yahoo.com/news/articles/michigan-attorney-general-calls-action-202210921.html