LANSING, Mich. (WLNS) — Consumers Energy and Michigan Gas Utilities are raising their rates for natural gas customers.
The Michigan Public Service Commission announced Wednesday that settlement agreements were approved that allow Consumers and MGU to raise their rates starting Oct. 1.
Consumers will raise its natural gas rates by $95 million, albeit 55% less than the $212 rate-hike that Consumers originally sought.
According to the MPSC, a Consumers customer who uses 10,000 cubic feet, or 100 ccf, of natural gas monthly will pay $4.20 more for their gas bill — a 4.2% increase.
The settlement agreement was signed by Consumers, Michigan Attorney General Dana Nessel, MPSC, and several other intervenors in the case.
Consumers’ most recent gas rate increase of $170 million was approved in July 2022.
The commission also allowed Michigan Gas Utilities to raise its natural gas rate by $9.9 million — 48% lower than the $19.1 million MGU originally sought.
The MGU rate increase will go into effect starting Jan. 1.
MPSC says a typical MGU customer who uses 100 ccf of natural gas monthly will pay $5.10 more for their gas bill, or a 6.6% increase.
Attorney General Dana Nessel said in a news release Wednesday that her office and the Citizens Utility Board of Michigan intervened to secure the 48% reduction in MGU’s requested rate increase, as well as a reduction in the corporation’s return on equity from 10.4% to only 9.8% — the lowest in the state for investor-owned utilities.