TRAVERSE CITY — Consumers Energy was approved last week for a $276 million rate hike, an increase of about 6-10% for the average customer’s electric bill.
The utility provider says the funding will go toward reliability investments that would decrease the likelihood and of prolonged power outages.
Consumers also says it is planning to seek another increase this June, part of what it is calling a multi-decade reliability plan.
“Our mission is that no more than 100,000 customers are impacted by any severe weather event, and that if they are impacted, we’re able to restore power in under 24 hours,” said Trisha Bloembergen, a spokesperson for Consumers Energy.
Consumers estimates that an average customer will pay an extra $9 per month on a $140 bill.
Bloembergen says that a majority of the rate increase will go toward improving grid reliability.
“Seventy-five cents of every customer dollar goes directly into securing the grid, so you will see your investment directly in your backyard,” she said. “We know we can’t control severe weather, but it’s even more important as we’re seeing an increase in the frequency that we invest in our grid and secure it to reduce the impact on our customers.”
Consumers received pushback from Michigan Attorney General Dana Nessel, who argued that an initial $430 million request was too high.
Consumers’ request has also been opposed by some environmental groups.
“I think the problem that we’ve seen is that their spending has not been directly tied to performance outcomes, and that’s the piece here that isn’t connecting,” said Ashley Rudzinski, climate and environment program coordinator for the Groundwork Center.
She also says that investments in reliability should be better balanced with efforts to keep rates affordable.
“The Michigan Public Service Commission has approved $800 million in rate increases just for Consumers Energy since 2020 — that is a very big number, and what do we have to show for that?” she said.
Consumers says that the June request, which will kick off a multi-month public consideration process, will further detail the company’s plans for the coming decades.
“We are planning on requesting to build two new natural gas plants, in addition to almost 13 gigawatts of renewable and clean resources,” Bloembergen said. “We plan ahead. This is a 20-year outlook so that we can ensure that our grid is secure for all of our customers.”