Michigan Public Service Commission Approves $157M Consumers Energy Gas Rate Hike for Pipeline Safety

The Michigan Public Service Commission has approved a $157 million natural gas rate increase for Consumers Energy, effective November 1, aimed at enhancing the safety and reliability of the company's gas pipeline system by replacing aging and leak-prone infrastructure. This approved increase is significantly lower than the company's initial $248 million request and the later amended $217 million proposal. The typical residential customer using 75 ccf of natural gas will see their monthly bill rise by approximately $4.44 to $6.44, representing an increase around 6.9% to 8.1%. The commission approved funding for infrastructure replacement, leak backlog remediation, and a Low to Moderate Income Customer Support enhancement project but rejected renovation costs for the Kalamazoo Service Center. Consumers Energy officials emphasized their strategy of purchasing natural gas during lower-cost summer months to manage costs and ensure system reliability. The commission also directed the company to provide further justification on certain customer attachment program costs to avoid unfair subsidization.