LANSING, Mich. (Michigan News Source) – Michigan residents would face an increase in their electricity rates if Consumers Energy’s request to increase its rates is approved by the Michigan Public Service Commission.

Consumers Energy rate request sparks concern.

Consumers Energy requested a $436 million annual rate hike. The hike would take effect in May 2026 and last for a period of 12 months, ending April 30, 2027. If the rate hike is not approved, then the company would experience an annual electric revenue deficiency of $436 million, according to court documents.

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“Without rate relief, Consumers Energy’s retail electric rates will be so low as to deprive Consumers Energy of a reasonable return on the Company’s property, and amount to confiscation and deprivation of the Company’s property, contrary to the Company’s rights under the Constitutions of the United States and of the State of Michigan,” the documents said.

AG Nessel steps in.

This follows Consumers Energy’s latest hike, approved in March. Consumers Energy had requested a combined $325 million hike, but it was lowered to over $153 million, according to a press release. Michigan Capitol Confidential reported this hike resulted in a 2.8% increase for residential customers.

Attorney General Dana Nessel filed a notice of intervention to hold Consumers Energy responsible for providing proof that it needs the rate hike.

“Before Consumers Energy, or anyone else for that matter, can even begin to measure any affordability or reliability improvements from their last rate hike, the company is back in business asking to bill their customers an additional $400 million annually,” Nessell said in a press release. “In a troubling continuation of the patterns we see before the MPSC from both Consumers Energy and DTE, this is at least among the largest rate hikes Consumers has ever requested, if not the largest itself.”

Consumers Energy provides electricity to 1.9 million customers in Michigan. If approved, the $436 million proposed hike would be the company’s sixth hike in the last six years.