Michigan AG challenges Consumers Energy request for $456 million rate hike

Michigan Attorney General Dana Nessel said she is challenging Consumer Energy's proposal to raise its electricity rates by about $456 million a year, a plan that would hike residential rates by about 9.8%. 

In her filing to the Michigan Public Service Commission, Nessel said the state should approve less than half of that request. 

Consumers Energy began the process in April to raise electricity rates by about $456 million per year across the board. The 10-month review period includes a chance for the public to submit their comments and input.  

That filing overlapped with the final stages of the most $278 million rate hike went into effect in May. Residential electricity bills went up by about 6.1% as a result of that rate hike. 

Consumers Energy is one of Michigan's largest utility companies, providing electricity to much of the Lower Peninsula. Its service area in Southeast Michigan is limited to parts of Monroe and Lenawee counties, with DTE serving most of Metro Detroit.  

Consumers Energy also provides natural gas to a large part of Michigan. 

"It is likely the MPSC will simply split the difference between the well-reasoned numbers my office proposes and the obscene demand from the utility, as they've done many times," Nessel said. "In this time of serious cost concerns in households all across Michigan, from groceries to gasoline, from the gas bill to the electric bill, it is remarkable our utilities continue to demand, and receive, rate hikes as large as we've ever seen." 

Consumers Energy said this summer that its 2027 plan calls for upgrades intended to result in fewer and shorter power outages to consumers. The company plans to bury 50 miles of lines, improve circuits where customers are most likely to experience outages, and update technology to help monitor the system more effectively. 

"We know cost is top of mind for customers, which is why we're focused on smart, strategic investments to improve service -- ensuring 75 cents of every customer dollar goes back into the grid. We will continue to do all we can to ensure people have access to assistance to manage and pay bills," said Greg Salisbury, Consumers Energy's senior vice president of electric distribution. 

The above video originally aired on June 3, 2026.