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Michigan regulators approve $276.6M Consumers Energy rate hike -- What that means for residents

Residential electric bills to increase by 8.9% starting May 1

FILE -- Power lines (AP Photo/David Zalubowski) (David Zalubowski, Copyright 2025 The Associated Press. All rights reserved.)

Michigan’s utility regulator has approved another rate hike for Consumers Energy customers, allowing the company to collect an addition $276.6 million in revenue from its electricity customers.

Residential customers will see their electricity bills increase by 8.9% starting May 1, 2026, according to a release from Michigan Attorney General Dana Nessel’s office.

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The Michigan Public Service Commission (MPSC) made the decision Friday, landing $160 million below what Consumers Energy originally requested. The utility had asked for a $436 million rate hike plus an additional $24.3 million surcharge, a 13% increase overall.

Nessel intervened in the case, arguing the MPSC should limit the increase to just 3.5%, a nearly 65% cut to the company’s request.

“Consumers Energy customers will once again have to brace for higher bills because of the never-ending cycle of rate hikes passed on by the utility,” said Nessel. “Unfortunately, this is something we have become accustomed to. Even though my office carefully reviews DTE and Consumers Energy rate hike requests for bloated and unjustified costs, it is ultimately the MPSC who determines how much to approve or how often these rate hikes occur. This process continues to place the burden on ratepayers and demands greater accountability to ensure Michiganders receive the affordability and reliability they deserve. I urge our elected leaders of both parties to reconsider this badly broken system. It’s both unfair and unsustainable for our state.”

Last year, the MPSC approved a $154 million electric rate hike for Consumers Energy. Since 2020, regulators have approved nearly $800 million in total annual revenue increases for the company.

Nessel said her office has helped Michigan consumers save more than $4.1 billion by intervening in utility cases since she took office.

Under state law, Consumers Energy can file its next rate hike request as early as June 2026.

Several other utility rate cases are currently open before the MPSC, including:

  • Consumers Energy natural gas rate hike request (U-21981)
  • DTE Energy natural gas rate hike request (U-21973)
  • SEMCO Energy Gas Company gas rate hike request (U-22002)
  • Upper Peninsula Power Company electric rate hike request (U-22032)

DTE has also announced its intent to file another electric rate hike request in April, according to the release.

Consumers Energy provides electricity to approximately 1.9 million Michigan customers and natural gas to 1.8 million customers.


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