Consumers Energy seeking a nearly 11% increase in residential gas bills

Consumers Energy is seeking a $248 million rate increase to fund its “Natural Gas Delivery Plan.” Photo credit: Shutterstock.

by Janelle D. James  (Bridge Michigan)

Consumers Energy has petitioned the Michigan Public Service Commission for a gas-rate increase that would send residential bills almost 11% higher.

The company said Wednesday that the $248 million rate increase will “strengthen its natural gas system … and replace up to 10,000 decades-old natural gas service lines that directly serve customers.”

The utility is asking for a 12% overall increase, including a 10.8% boost in residential rates and a 4.5% increase in business rates: 5.9% for small businesses, 3.3% for medium-sized businesses and 1.9% for large businesses.

If approved, the higher rates would take effect in late 2025.

“This month’s cold weather provides a real-life reminder of the need for a strong natural gas system that keeps our friends and neighbors warm,” said Holly Bowers, Consumers Energy’s vice president of gas engineering and supply, in a statement. “Our Natural Gas Delivery Plan is ensuring our system remains safe in all weather while continuing to get cleaner for Michigan’s environment and costing the typical household less than $3 a day.”

The request comes after regulators approved a $35 million increase, 1.5% for residents and 4.9% for businesses and other larger customers in July.

Consumers Energy is the state’s largest natural gas company, servicing about 1.8 million homes and businesses. Over 1 million of them are in southeast Michigan.

“Consumers Energy is honored to serve so many Michiganders who count on us, which is why we’re working for today and the long term to upgrade our system to deliver natural gas dependably,” said Chris Fultz, Consumers Energy’s vice president of natural gas operations, in a statement. “When you see Consumers Energy employees at work, you can be sure we’re making our system safe and secure to serve you for years to come.”

This article is being republished through a syndication agreement with Bridge Michigan. Bridge Michigan is Michigan’s largest nonprofit news service and one of the nation’s leading and largest nonprofit civic news providers. Their coverage is nonpartisan, fact-based, and data-driven. Find them online at https://www.bridgemi.com/.

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by Sara Swanson

Sara Swanson is an editor, writer and founder of the Manchester Mirror.