(LANSING) - Consumers Energy has filed a request with the Michigan Public Service Commission seeking a $456 million annual electric rate increase, the utility's largest rate hike request in more than two decades.
The proposal begins a formal 10-month review process and, if approved as submitted, would increase residential electric bills by about 9.8% for nearly 1.9 million customers across Michigan's Lower Peninsula.
Consumers Energy said the additional revenue would fund grid modernization projects, severe weather infrastructure upgrades and expanded tree-trimming efforts aimed at reducing power outages.
The filing was submitted on the earliest date allowed under state law following a previous rate case and comes just one month after a separate $276.6 million rate increase took effect on May 1.
The request has already drawn criticism from state officials and consumer advocates.
Michigan Attorney General Dana Nessel announced her office will intervene in the case, describing the state's utility rate process as "truly broken" and pledging to closely examine the company's expenses and justification for the increase.
State Senator Kevin Hertel said Consumers Energy customers have seen their monthly bills nearly double over the past two decades, while advocacy groups raised concerns about the impact of continued rate increases on Michigan families.
The proposal is also fueling discussion among lawmakers about utility regulation reforms. One proposal, Senate Bill 768, would require utilities to submit stable three-year rate plans rather than seeking annual increases. Other lawmakers have suggested utility rate freezes as a way to provide relief to customers.
The Michigan Public Service Commission is expected to make a final decision after completing its review process.