Michigan attorney general to intervene in Consumers Energy's $436 million rate hike plan

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Michigan's attorney general took aim Monday at Consumers Energy's proposed rate hike, just days after various advocacy groups rallied outside a state public service commission meeting, uniting to protest DTE Energy's recent plan to increase its rates.
The Attorney General Dana Nessel filed a notice of intervention on behalf of Michigan's residents in the electric rate case that the three-member public service commission will consider.
Consumers Energy is seeking an annual rate hike of about $436 million, which Nessel said is on top of $24 million more in deferred distribution costs through a surcharge that it is seeking to bill customers.
The increase, the Jackson-based power company said in its filing with the state, would cover investments to support "delivery of safe, reliable and resilient, clean and equitable, and competitive energy" to its customers.
The utility added in a statement to the Free Press that its request proposes "major investments in line clearing and technology across all communities we serve to support our long-term goal that no customer will go more than 24 hours without power."
"We understand many of our customers struggle to pay bills, and we are dedicated to the people who count on us for energy," it said. "We will continue to provide assistance and programs that help people reduce their energy use, pay bills and stay safe in their homes."
Nessel has promised to "thoroughly scrutinize" the rate increase, adding that it was part of what she called "a troubling continuation of the patterns" by the state's two largest regulated electric companies.
Recent rate hike requests from Consumers Energy and DTE, the attorney general said, have included what Nessel described as "inappropriate costs," which, in DTE's case, she identified as "private jet travel for executive staff" among other things.
"At some point, we have to ask how long utility companies like DTE and Consumers Energy will be allowed to treat customer bills and our energy rates like a blank check," Nessel said last month, when Detroit-based DTE said it was seeking to raise rates by $574 million.
That is more than double what the company was granted just months ago.
What's more, the Citizens Utility Board of Michigan — a nonpartisan, nonprofit group — has found, based on its review of data from the U.S. Energy Information Administration, that Michiganders already pay some of the highest energy bills in the Midwest.
In addition to high bills, the group also looked at energy reliability, which it said scored low.
More: Another DTE rate increase could 'bankrupt' Michigan families, state rep. says
Residents, advocacy groups and a state lawmaker, rallied last Thursday outside a Michigan Public Service Commission meeting at Cadillac Place in Detroit to protest DTE' Energy's request for a rate hike.
"We must continue to invest to deliver the cleaner and more reliable energy our customers demand and deserve," DTE said in an email to Free Press last week, and that it "is making progress on building the electric grid of the future."
State Rep. Donavan McKinney, D-Detroit, who is also running for Congress, addressed the crowd at the rally, saying the proposed hike is devastating for his constituents, many of whom already struggle to pay their bills.
The Michigan League of Conservation Voters, a nonprofit group which was at last week's rally, is urging the public service commission to knock down the rate hikes.
"Our bills are too damn high," said Alex Kellogg, with the league. "At a time when costs for everything are high, Consumers Energy and DTE are trying to raise our energy bills by a combined amount of more than $1 billion dollars."
Nessel, a Democrat, has been vocal in questioning rate hikes.
"Before Consumers Energy," she said, "or anyone else for that matter, can even begin to measure any affordability or reliability improvements from their last rate hike, the company is back in business asking to bill their customers an additional $400 million annually."
Contact Frank Witsil: 313-222-5022 or [e-mail].
This article originally appeared on Detroit Free Press: Michigan attorney general to look at Consumers Energy rate increase