Consumers Energy Raises Rates Again as Michigan’s Most Expensive Hours Return

FLINT, MI — Michigan residents are now paying more for electricity twice over. Consumers Energy’s latest rate increase took effect May 1, raising the average residential bill by about $6.46 per month, and now the company’s higher summer peak pricing has returned, charging customers about 24.5 cents per kilowatt hour between 2 p.m. and 7 p.m. on weekdays, compared to about 19.7 cents during off peak hours. The summer rates began June 1 and remain in effect through September 30.

The Michigan Public Service Commission approved a $276.6 million rate increase for Consumers Energy in March. That increase followed another approved electric rate hike of about $154 million last year, continuing a string of increases that critics say have pushed Michigan utility bills higher year after year.

Now customers are entering the hottest months of the year with the company’s summer pricing structure back in place. Under the plan, electricity costs roughly five cents more per kilowatt hour during weekday afternoons when air conditioners, fans, appliances, and household demand are at their highest.

Consumers Energy says the higher afternoon rates are meant to reduce stress on the electric grid by encouraging people to shift energy use into the morning, evening, and weekend hours. Critics argue the policy hits families exactly when many have little choice but to run air conditioning during Michigan heat waves.

Adding to the frustration, Consumers Energy announced plans for yet another electric rate case just days after receiving approval for the latest increase. State records show the company signaled its intent to seek another rate hike as soon as it became eligible under Michigan law.

For many Michigan residents, the question is becoming familiar: how many rate hikes can households absorb before electric service becomes unaffordable?

Do you think Michigan utility companies are improving service enough to justify these repeated rate increases?