MPSC approves increase rate 88% lower than originally sought


Repair crews at a power pole (Nexstar, file)

LANSING, Mich. (WLNS) – The Michigan Public Service Commission approved a $27 million increase for electric customers, 88% less than the $225 million they originally sought.

The rates approved today also include a $27.2 million reduction in depreciation costs.

A typical customer who uses 500 kilowatt hours of electricity per month will see an increase of 59 cents on their monthly bill starting January 2022.

MPSC says the inreases are necessary and the additional revunue will go towards improving reliability and minimizing power outages.

The Commission also approved $94.4 million for Consumers Energy to increase its tree trimming and line clearing so that the company’s entire system is cleared every seven years.

The Commission also approved $63.4 million the company projects it will need for outage restoration efforts. 

Consumers had sought approval for nearly $128 million in 2021 and 2022 capital costs for the company’s Washtenaw Solar Energy Project near Ann Arbor, which the company plans to use to increase its sources of renewable energy as part of its goal to achieve net-zero carbon emissions by 2040. While the Commission disallowed the projected costs, citing a lack of specific evidence in Consumers’ filing, the contracts were approved by the Commission Nov. 18. The Commission said it would be more appropriate to review the costs in Consumers’ next general rate case. The Commission also deferred consideration of a number of costs associated with generation assets that are the subject of the company’s pending integrated resource plan. 


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