LANSING, MI (WNWN/WTVB) – Natural gas customers of Consumers Energy and Michigan Gas Utilities will see rate increases after the Michigan Public Service Commission approved settlement agreements on Wednesday.
The Commissions action permits Consumers Energy to raise rates by $95 million which was a reduction from the initial $212 million increase the Jackson-based utility had sought.
Consumers says the higher rates are needed to address capital infrastructure improvements, investment in technology and operational efficiency, and increased financing costs.
The rate increase will take effect October 1, 2023. A typical residential customer using 100 ccf of natural gas monthly will see an increase of $4.20 on their bill.
The Commission also approved a settlement agreement permitting Michigan Gas Utilities to raise its natural gas base rate by $9.9 million which was lower than the $19.1 million increase.
MGU said the increase was needed to fund safety and reliability upgrades and cover increasing costs for materials and labor as well as the impact of higher interest rates and inflation.
The rate increase will be effective January 1, 2024. A typical residential customer using 100 ccf of natural gas monthly will see an increase of $5.10 on their bill.
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