Michigan commission approves $157M Consumers Energy gas rate hike starting in November
Consumers Energy has received approval for a natural gas rate increase, effective November 1, the Michigan Public Service Commission said Tuesday.
Consumers Energy provides both electric and natural gas in parts of Michigan, with much of mid- and Southeast Michigan included in its natural gas service area.
Under the newly approved rate, a typical residential natural gas customer will see an increase of 8.1% or about $6.44 on their monthly bill, state officials said.
The company originally requested a rate increase that would have added up to more than $248 million statewide, but then lowered that request to $217 million. Instead, the commission approved $157 million increase.
The rate increase, the commission said, is "aimed at boosting the safety and reliability of its gas pipeline system by replacing gas lines most at risk of leaks and service interruptions for customers."
In the meantime, the commission approved Consumers Energy's proposal to invest in its Low to Moderate Income Customer Support enhancement project. State officials also approved the budget for addressing a backlog of known leaks at an accelerated rate.
State officials rejected the company's proposal over renovation costs for its Kalamazoo Service Center, directing the company to seek those expenses in the future should it wish, with a timeline and more details for that program.