LANSING, MI — April 26, 2025 — Consumers Energy is under increasing scrutiny after proposing a significant $248 million increase in natural gas rates, a move that could drive customer bills up by 12% and raise monthly charges for residential and small business customers by 33%.
The proposed hike comes just five months after the Michigan Public Service Commission (MPSC) approved a $35 million rate increase, prompting swift opposition from Michigan Attorney General Dana Nessel. In recent testimony submitted to the MPSC, Nessel called for a drastic reduction in the proposed amount—slashing it by nearly 70% to $76.5 million. She argues that nearly 70% of Consumers Energy’s proposed expenses are “unjustified,” warning that the steep increase places an unnecessary burden on families and small businesses already facing rising costs.
“Michigan families shouldn’t be forced to shoulder inflated utility bills while utility profits rise,” Nessel stated. “Our recommendation would ensure necessary investments are made without overcharging ratepayers.”
Consumers Energy defended its proposal, emphasizing the importance of upgrading aging infrastructure and ensuring safe, reliable energy delivery. “We respectfully disagree with the Attorney General’s assessment,” the company said in a statement. “These investments are necessary to modernize our system, reduce long-term costs, and support Michigan’s energy future.”
The MPSC will hold public hearings later this year, giving stakeholders, advocacy groups, and customers a chance to weigh in. A final decision on the rate case is expected by late 2025.
This rate hike debate comes as Consumers Energy simultaneously promotes energy-saving initiatives such as its appliance recycling program, offering rebates up to $70 for old refrigerators and freezers. While the company touts these efforts as part of a broader sustainability mission, critics say rising rates could undermine public support.
As Michigan awaits the MPSC’s ruling, many eyes remain on Consumers Energy—balancing between modernization and affordability in a rapidly evolving energy landscape.