The Michigan Public Service Commission approved a rate increase of $276.6 million for Consumers Energy on Friday — significantly less than the $423 million the utility had originally requested.
According to the commission, a typical residential customer using 500 kilowatt-hours a month will see an increase of $6.46, or 6.1%, in their monthly bill. The new rates will take effect May 1, 2026.
The increase is part of the utility's 2026 Reliability Action Plan, which includes efforts to bury powerlines and install poles that can withstand stronger winds, storms and other severe weather.
Consumers Senior Vice President of Regulatory and Legal Affairs Kelly Hall said during a press conference Wednesday that monthly bills could have grown by an average of $14 under the company's original proposal.
Shaquila Myers, a member of the public service commission, said she was in favor of the rate increase because it focused on system reliability and customer affordability.
"The order also prioritizes proactive infrastructure improvements as they play an important role in long term affordability by limiting costly emergency, reactive repairs that occur during extreme weather and storm events over time," Myers said. "This approach leads to more efficient system operations and more predictable costs."
One of the efforts Consumers said it will undertake to improve reliability is increasing its tree-trimming schedule.
Broken and fallen tree limbs are one of the leading causes of power outages during ice and windstorms.
Currently, Consumers said it trims the trees around its lines approximately every 10 years.
Commissioner Dan Scripps said Consumers planned to use the additional funds to shorten its tree trimming cycle.
"Every part of the system will be trimmed every five years with direction in the order to study the cost of benefits of going even further," Scripps said. "Consider the four-year tree-trim cycle that has, more than anything, resulted in some of the reliability improvements that we've seen over the last couple of years."
Some public commenters at the commission meeting expressed frustration with the commissioners' approval of the rate change.
One commenter, Peter, said the increase will not improve customer affordability like the commissioners claim.
"People can't afford these raising bills as it is. And you guys just keep jacking things up," he said. "You guys got to stop saying affordability when every one of these meetings is a bill raise."
The utility plans to file for another rate increase in June.
Copyright 2026 WKAR Public Media
Editor's Note: Consumers Energy is one of Michigan Public's corporate sponsors.
