Approved return on equity: 9.9%
Approved revenue requirement increase: $170 million
Approved residential class rate increase: 7.7%
Requested return on equity: 10.5%
Requested revenue requirement: $278 million
Requested residential class rate increase: 12.5%
Time period: 12 months ending Sept. 30, 2023
Events:
The Citizens Utility Board of Michigan is an intervenor in this case.
Here are a few things we think are important for you to know about this case if you are a Consumers Energy customer:
On July 7, the MPSC approved a settlement that Consumers Energy has reached with various groups, including CUB, on this rate case that will cut the utility’s proposed rate increase from $278 million to $170 million.
As a result of the settlement, the residential rate increase will fall from 12.5%, as requested by Consumers Energy, to 7.7%.
One important change from the utility’s original request to the settlement is a decrease in the return on equity from 10.5% to 9.9%. Another concession from the utility that cut the proposed rate hike was that the settlement will continue “the prohibition on the Consumers Energy recovering costs related to the fire at the Company’s Ray Station consistent with the Commission’s orders in previous cases unless the Company prevails in a pending appeal before the Court of Appeals,” as Attorney General Dana Nessel’s office described in a statement.