Consumers Energy Co. received approval from the Michigan Public Service Commission to raise its natural gas rate by $143.5 million, or about 63% of the utility's initial request.
The utility's residential customers will see an approximate 8.5% increase, or about $6.11 per month for usual bills, starting in October, according to an Oct. 4 news release from the commission. With the rate increase, the utility is expected to ramp up investments on gas transmission and distribution infrastructure, as well as improve technology capabilities through metering and customer-facing applications.
In November 2018, the CMS Energy Corp. subsidiary asked for a $229 million gas rate increase over the approved rates in August of the same year. In response to issues raised by the commission staff and other entities, the utility later lowered its request to $204 million.
The regulator approved spending $100 million starting in 2020 to replace high-risk cast iron or bare steel underground lines but disallowed $92.4 million in proposed capital spending related to the Mid-Michigan Pipeline project, well rehabilitation and fleet purchases.
Consumers Energy provides natural gas service to 1.7 million customers in Michigan's Lower Peninsula.
