Nessel asks MPSC to cut Consumers Energy rate hike

Nessel challenges the requested increase

Nessel has filed testimony with the Michigan Public Service Commission asking the regulator to reduce Consumers Energy’s proposed rate increase by more than half. The position challenges the size of the company’s request rather than calling for the full proposal to be approved. If the commission adopts Nessel’s recommendation, Consumers Energy would receive less than half of the increase it requested.

A smaller approved increase could still mean rates rise, but by less than Consumers Energy sought. The testimony therefore presents the commission with an alternative to the company’s requested amount.

What the filing means

The testimony is part of the commission’s consideration of the rate request; it is not a final rate order. Consumers Energy’s proposal does not take effect merely because the company requested it, and Nessel’s recommendation does not take effect merely because it was filed. The Michigan Public Service Commission must decide what rate change, if any, to authorize.

The central issue is the difference between the increase Consumers Energy requested and the amount the commission ultimately approves. The commission’s decision will determine whether Nessel’s proposed reduction is accepted and what change applies to Consumers Energy rates. Until that decision, both the utility’s request and Nessel’s proposed cut remain positions before the regulator. The next key step is commission action resolving the request and setting the authorized amount.