Consumers Energy Seeks $436 Million Rate Hike, Faces Pushback from Michigan AG

Michigan-based Consumers Energy has not only faced a storm of energy demand but also a controversy of the proposed $436 million rate hike, which will be the biggest so far. The official approval will mean that residential utility bills will be raised by almost 13.3%, an act which has been the object of scathing attacks from many quarters, particularly from the State’s Attorney General.

No doubt has been cast by Nessel. She was loud in her condemnation of the proposed measures and described them as “appalling,” and specifically as such that came of late, directly after Consumers Energy’s green light to raise rates by $154 million. The Attorney General then questioned the fairness and the timelines of this proposal. “How do they already know they need more money when they haven’t spent the last amount?”

She primarily raises the issue of high prices and the unavailability of other sources. “It’s pricing people out of electricity,” Nessel claimed, explaining how a customer doesn’t have the right to pick a new supplier even if the initial one is unsatisfactory. “If the electricity supply fails and the service administration is of low quality, the only thing left to do is wait for the electricity service to be restored,” she elaborated.

As for the regulated utility company Consumers Energy, they say that their request for a significant increase in the rates has a justification, which is the main element of the proposed initiative–reliability and readiness for modernization. Their spokesman Brian Wheeler has made it clear that they are planning to invest in technological systems and in the pruning of trees so that the level of power cut can be reduced, especially in times when there are an increasing number of storms in Michigan. He admitted that this could potentially lead to a problem of meeting household financial needs but he further reminded that the company has devised schemes that will enable the affected to control and manage their monthly costs.

Nevertheless, the Michigan Public Service Commission (MPSC) has the final word. The commission is going to discuss the proposal by means of public hearings and paper reviews. Nessel has not yet declared herself about the choice but she has made it clear that her office will not permit the rate adjustment to be too high only as it was the case last year when the office managed to strike a lower increase through a negotiation with the company.

It is obvious that the citizens of Michigan do not know yet what exactly will happen in their state. However, they are closely monitoring the situation which directly affects the homes and the business of the millions people in the state.