LANSING – The Michigan Public Service Commission today approved a natural gas rate increase for Consumers Energy Co. aimed at boosting the safety and reliability of its gas pipeline system by replacing gas lines most at risk of leaks and service interruptions for customers.
The Commission authorized Consumers to raise rates by $157,495,000, a more than 36% decrease from the $248 million the company initially requested but later lowered to $217 million (Case No. U-21806). The Commission approved a rate of return on common equity of 9.8% and an overall rate of return of 5.99%.
The new rates go into effect Nov. 1. A typical residential customer using 75 ccf (hundred cubic feet) will see an increase of $6.44, or 8.1%, on their monthly bill.
Among the items prioritized for investment, the Commission approved $208.93 million for Consumers’ enhanced infrastructure replacement program, which helps ensure customer safety and reliable system operations by replacing main pipeline materials considered at highest risk for leaks and service interruptions with new materials. The Commission also approved $42.51 million for the utility’s vintage service replacement program, which replaces high-risk older pipeline materials not included in other replacement programs.
In addition, the Commission approved Consumers’ request for investment in its Low to Moderate Income (LMI) Customer Support enhancement project that will help remove barriers for income-qualified customers to identify and enroll in energy assistance programs. The Commission has made it a priority to simplify and streamline the process for LMI customers to access support and indicated the program will continue to be assessed and refined in future proceedings. The Commission approved $1.9 million for the project but disallowed $200,628 in bridge period enhancements and $40,126 in the project’s information technology costs.
The Commission disallowed Consumer’s proposed costs for renovation of its Kalamazoo Service Center, directing the company to seek these costs in a future rate case with evidence and a timeline for the program. The Commission approved actual 2024 costs for Consumers’ work on relocation of its Lansing Service Center and for construction of a new Hastings Service Center.
