Trending...
- New Release: 'The Invisible Alternative' Unveiled by Atrisk Corporation, Resilient
- 'Unity Through Christ Music Festival' coming to Detroit Saturday August 9, 2025
- SacraPod Suites Unveils AI-Powered 'Work + Rest' Smart Hospitality Model for Retrofitting Underused Motels Across the U.S
FOR IMMEDIATE RELEASE Dec. 22, 2021
Media Contact: Matt Helms 517-284-8300
Customer Assistance: 800-292-9555
Michigan.gov/MPSC
Twitter
The Michigan Public Service Commission today approved a substantially reduced rate increase of $27,118,000 for Consumers Energy Co.'s electric operations, a nearly 88% reduction from the $225 million the utility had originally requested (Case No. U-20963). The rates approved today include a $27.2 million reduction in depreciation costs that were agreed to by the parties and approved by the Commission earlier this month in Case No. U-20849.
A typical residential customer who uses 500 kilowatt hours of electricity per month will see an increase of 59 cents (0.64%) on their monthly bill starting in January 2022.
Consumers sought the increase to fund capital investments in its distribution system and to make up for a decline in sales revenue, while also presenting costs related to the company's plans for 300 megawatts of solar power generation spelled out in the utility's integrated resource plan (Case No. U-20165).
The rate increase will fund efforts by the company to improve its reliability, a key priority for the MPSC as Michigan utility customers experience significant outages from increasingly severe storms amid a changing climate. The Commission approved more than $200 million for targeted reliability improvements and modernization of the company's electric distribution system.
Falling trees and limbs are the single biggest cause of power outages for electricity customers in Michigan. The Commission approved $94.4 million for Consumers to increase its tree trimming and line clearing so that the company's entire system is cleared every 7 years. The Commission directed the company to file more detailed information about how the increase in forestry spending will improve system reliability, to provide reliability metrics projections, and to develop a surge program to deal with a backlog in tree trimming in a way that addresses customer equity and examines more closely circuits that have had the longest time between clearing cycles.
More on Michimich.com
The Commission also approved $63.4 million the company projects it will need for outage restoration efforts.
Among the factors lowering the rate increase were significant costs the Commission disallowed.
Consumers had sought approval for nearly $128 million in 2021 and 2022 capital costs for the company's Washtenaw Solar Energy Project near Ann Arbor, which the company plans to use to increase its sources of renewable energy as part of its goal to achieve net-zero carbon emissions by 2040. While the Commission disallowed the projected costs, citing a lack of specific evidence in Consumers' filing, the contracts were approved by the Commission Nov. 18. The Commission said it would be more appropriate to review the costs in Consumers' next general rate case. The Commission also deferred consideration of a number of costs associated with generation assets that are the subject of the company's pending integrated resource plan.
The Commission similarly disallowed:
Consumers sought a rate of return on equity of 10.5%. Today's order approves a return on equity of 9.9% and a capital structure with a 51.02-48.98 equity-to-debt ratio.
More on Michimich.com
Today's order also approved $16.5 million for a two-year extension of Consumers' PowerMIDrive pilot that funds rebates and supports the installation of electric vehicle chargers at homes and for public use, as well as an increase in capital funding for its PowerMIFleet pilot program for commercial electric vehicle adoption. In approving this extension for the two electric vehicle pilot programs, the Commission also directed the company to include a more robust plan to move beyond pilots to a permanent program in its next rate case to address Consumers' stated goal to support 1 million electric vehicles on Michigan's roads by 2030.
The Commission also ordered the company to provide more detailed information connecting its operational metrics performance to proposed incentive compensation in its next general rate case.
Intervenors in the case were the Michigan Department of Attorney General; the Association of Businesses Advocating Tariff Equity; Energy Michigan Inc.; The Kroger Co.; Michigan Environmental Council; Natural Resources Defense Council; Sierra Club: Citizens Utility Board of Michigan; Residential Customer Group; Great Lakes Renewable Energy Association; Michigan Cable Telecommunications Association; Hemlock Semiconductor Operations LLC; Midland Cogeneration Venture Limited Partnership; Michigan Energy Innovations Business Council; Institute for Energy Innovation; Environmental Law and Policy Center; Ecology Center; Vote Solar; Michigan State Utility Workers Council, Utility Workers Union of America, AFL-CIO; ChargePoint Inc.; Michigan Municipal Association of Utility Issues, and Walmart Inc. MPSC Staff also participated.
To look up cases from today's meeting, access the MPSC's E-Dockets filing system.
Watch recordings of the MPSC's meetings on the MPSC's YouTube channel.
For information about the MPSC, visit www.Michigan.gov/MPSC, sign up for its monthly newsletter or other listservs, or follow the Commission on Twitter or LinkedIn.
DISCLAIMER: This document was prepared to aid the public's understanding of certain matters before the Commission and is not intended to modify, supplement, or be a substitute for the Commission's orders. The Commission's orders are the official action of the Commission.
Media Contact: Matt Helms 517-284-8300
Customer Assistance: 800-292-9555
Michigan.gov/MPSC
The Michigan Public Service Commission today approved a substantially reduced rate increase of $27,118,000 for Consumers Energy Co.'s electric operations, a nearly 88% reduction from the $225 million the utility had originally requested (Case No. U-20963). The rates approved today include a $27.2 million reduction in depreciation costs that were agreed to by the parties and approved by the Commission earlier this month in Case No. U-20849.
A typical residential customer who uses 500 kilowatt hours of electricity per month will see an increase of 59 cents (0.64%) on their monthly bill starting in January 2022.
Consumers sought the increase to fund capital investments in its distribution system and to make up for a decline in sales revenue, while also presenting costs related to the company's plans for 300 megawatts of solar power generation spelled out in the utility's integrated resource plan (Case No. U-20165).
The rate increase will fund efforts by the company to improve its reliability, a key priority for the MPSC as Michigan utility customers experience significant outages from increasingly severe storms amid a changing climate. The Commission approved more than $200 million for targeted reliability improvements and modernization of the company's electric distribution system.
Falling trees and limbs are the single biggest cause of power outages for electricity customers in Michigan. The Commission approved $94.4 million for Consumers to increase its tree trimming and line clearing so that the company's entire system is cleared every 7 years. The Commission directed the company to file more detailed information about how the increase in forestry spending will improve system reliability, to provide reliability metrics projections, and to develop a surge program to deal with a backlog in tree trimming in a way that addresses customer equity and examines more closely circuits that have had the longest time between clearing cycles.
More on Michimich.com
- Assent Expands Executive Team to Accelerate Global Growth & Innovation
- The World's Largest Green Economic Revolution Emerges as Nature, Tech, and Finance Converge
- Vinnetwork Unveils Decentralized AI Platform with Vinnetwork(VIN) Token to Challenge Tech Giants' Data Monopoly
- Centennial Flyers to Become Colorado's First Launch Customer for All-Electric B23 Energic Aircraft
- Pyro Marketing Opens New Digital Marketing Company in Saint Petersburg to Power Growth for Fitness and Ecommerce Brands
The Commission also approved $63.4 million the company projects it will need for outage restoration efforts.
Among the factors lowering the rate increase were significant costs the Commission disallowed.
Consumers had sought approval for nearly $128 million in 2021 and 2022 capital costs for the company's Washtenaw Solar Energy Project near Ann Arbor, which the company plans to use to increase its sources of renewable energy as part of its goal to achieve net-zero carbon emissions by 2040. While the Commission disallowed the projected costs, citing a lack of specific evidence in Consumers' filing, the contracts were approved by the Commission Nov. 18. The Commission said it would be more appropriate to review the costs in Consumers' next general rate case. The Commission also deferred consideration of a number of costs associated with generation assets that are the subject of the company's pending integrated resource plan.
The Commission similarly disallowed:
- $49 million in costs for the utility's vehicle fleet, finding that the company failed to demonstrate that historic spending was reasonable and prudent. The Commission directed Consumers to provide more detailed information about its projected fleet expenditures and its acquisition approach going forward, including an analysis incorporating the benefits and costs to ratepayers; how Consumers accounts for fleet depreciation, and how the company's move to decrease average vehicle age affects costs to ratepayers, and to consult with MPSC Staff on the company's fleet spending.
- $25.7 million in contingency budgeting for several capital expense projections for 2021 and 2021, noting the Commission's longstanding opposition to including uncertain contingency costs in customer rates is unjust and unreasonable.
- $24 million Consumers sought for the acquisition and development of future company-owned solar projects, finding the costs speculative and without certainty the properties will be used to provide utility service and may provide the utility with an unreasonable advantage over third-party project developers.
- $10 million in capital expenses related to the company's Standish and Neely/Hooper battery storage projects, saying that while the Commission remains committed to integrating clean, renewable technologies supported by battery storage into the grid, the costs here were unreasonably expensive for the benefits identified by the company.
Consumers sought a rate of return on equity of 10.5%. Today's order approves a return on equity of 9.9% and a capital structure with a 51.02-48.98 equity-to-debt ratio.
More on Michimich.com
- Dr. John Salerno of Salerno Wellness Introduces Their New Full Body Capsule for Advanced LED Light Therapy Patient Treatments
- $14M Expansion Deal with Famed David Lloyd Highlights Rebrand of Sports, Entertainment and Gaming Innovation by AI Driven, Online Fan Engagement Co
- Heartfelt Dreams Foundation Launches Campaign to Build CHD Hospital
- Radarsign Tackles Intersection Safety with Launch of Grid-Free Solar LED Stop Sign
- Wolverine Glass Explains 3 Different Types of Shower Door Glass
Today's order also approved $16.5 million for a two-year extension of Consumers' PowerMIDrive pilot that funds rebates and supports the installation of electric vehicle chargers at homes and for public use, as well as an increase in capital funding for its PowerMIFleet pilot program for commercial electric vehicle adoption. In approving this extension for the two electric vehicle pilot programs, the Commission also directed the company to include a more robust plan to move beyond pilots to a permanent program in its next rate case to address Consumers' stated goal to support 1 million electric vehicles on Michigan's roads by 2030.
The Commission also ordered the company to provide more detailed information connecting its operational metrics performance to proposed incentive compensation in its next general rate case.
Intervenors in the case were the Michigan Department of Attorney General; the Association of Businesses Advocating Tariff Equity; Energy Michigan Inc.; The Kroger Co.; Michigan Environmental Council; Natural Resources Defense Council; Sierra Club: Citizens Utility Board of Michigan; Residential Customer Group; Great Lakes Renewable Energy Association; Michigan Cable Telecommunications Association; Hemlock Semiconductor Operations LLC; Midland Cogeneration Venture Limited Partnership; Michigan Energy Innovations Business Council; Institute for Energy Innovation; Environmental Law and Policy Center; Ecology Center; Vote Solar; Michigan State Utility Workers Council, Utility Workers Union of America, AFL-CIO; ChargePoint Inc.; Michigan Municipal Association of Utility Issues, and Walmart Inc. MPSC Staff also participated.
To look up cases from today's meeting, access the MPSC's E-Dockets filing system.
Watch recordings of the MPSC's meetings on the MPSC's YouTube channel.
For information about the MPSC, visit www.Michigan.gov/MPSC, sign up for its monthly newsletter or other listservs, or follow the Commission on Twitter or LinkedIn.
DISCLAIMER: This document was prepared to aid the public's understanding of certain matters before the Commission and is not intended to modify, supplement, or be a substitute for the Commission's orders. The Commission's orders are the official action of the Commission.
0 Comments
Latest on Michimich.com
- Michigan SEO Group Shares 5 Proven Ways to Boost Social Media Engagement for Small Businesses
- Mussio Painting Shares The Benefits of Working with Professional Painters in Ann Arbor
- Family Caregivers in Michigan Can Now Get Paid Through Medicaid with Family Aide Home Care
- Florida Broker Bent Danholm Featured in the Daily Mail's U.S. Real Estate Coverage
- Robin Launches Legal Intelligence Platform to solve intelligence gap in Fortune 500 legal teams
- Melissa B. Releases Digitally Independent: Empowering Music Artists with AI and Brand Strategy
- Consumer Accountability Alliance Issues Formal Notice Alleging Proximate Liability for Medical Harm
- Utah Metal Fabricator Titan Forge Builds Momentum with Custom Steel Projects and Spiral Staircases
- Jason Koch: Pioneering the Future of Real Estate Development in New Jersey
- Bach and Beyond: Cellists Return to the Beach for 2nd Annual Bethany Beach Cellofest
- NR7 Miner launches zero-cost USDT cloud mining service: daily stable income + referral rewards for double profit
- Deaths Spur Closures, but Troubled Teen Camps Must Be Banned, CCHR Warns
- Hillside Terrace Champions Lifelong Learning in Assisted Living
- Veteran Criminal Defense Attorney Offers Strategic DUI Defense and License Reinstatement
- Ann Arbor Criminal Defense Attorney Urges Residents to Be Informed During Police Encounters
- ArborMotion Highlights the Importance of Timely Brake Replacement for European Vehicles
- EASTSIDE GOLF OPENS FIRST U.S. STOREFRONT IN DETROIT
- Palmer Lake Wine Festival To Build Bridges in Small Mountain Community, Highlight Local Businesses
- SacraPod Suites Unveils AI-Powered 'Work + Rest' Smart Hospitality Model for Retrofitting Underused Motels Across the U.S
- From Real Estate to Reel Power: H.L Woods Carves His Legacy as a Cutting-Edge Visionary Filmmaker