LANSING, Mich. (Michigan News Source) – Another rate hike is coming for Consumers Energy natural gas customers.

Higher Bills Start Nov. 1

The Michigan Public Service Commission (MPSC) authorized a rate increase allowing Consumers Energy to collect an additional $139.2 million annually. A typical residential customer using 75 hundred cubic feet of natural gas per month will see a monthly bill increase of $3.92, or 4.33%. The new rates take effect Nov. 1.

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The commission also approved a 9.8% return on common equity, the authorized return on the shareholder-funded portion of the utility’s investments.

Thursday’s approval is well below the $240 million annual increase Consumers Energy initially requested, but it follows several other rate hikes.

Consumers Energy Defends the Increase

The utility defended the increase in a statement to the media:

“We know any increase in costs matters to our customers, especially when families are already paying more for everyday needs. That’s why we want to be clear about where these dollars are going. These investments to our natural gas system allow us to stay ahead of potential problems, mitigate risks and strengthen the system each of us relies on to heat our homes. We are committed to delivering safe, reliable and affordable natural gas service our customers can count on and will remain transparent as we work to strengthen our system.”

Another $456 Million Request Pending

The increase comes as Consumers Energy is also seeking a $456 million annual electric rate increase.

Michigan Attorney General Dana Nessel, who has pushed back against the size and frequency of utility rate hikes, criticized the latest approval.

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“Utility customers across the State, whether they pay their bill to Consumers Energy or DTE, ask all the time when their energy bills will stop climbing,” Nessel said. “And it’s clear that the answer is never. For nearly eight years my office has worked doggedly to curb these utility rate hikes, and in turn the cases have only grown.”

According to Nessel’s office, Consumers Energy announced its latest natural gas rate hike request in October 2025, less than a month after receiving approval for a $157.5 million natural gas rate increase.