Michigan Natural Gas Prices May Raise By $248M Per Consumers Energy

As winter comes around, a working, reliable, and trustworthy natural gas system is important for a state like Michigan. This natural gas system will warm families' homes, businesses, school buildings, and other infrastructures during the coldest months of the year. On the flip side, this same system is what keeps us cool during the summer months as natural gas powers our air conditioning systems.

Consumers Energy is the largest natural gas provider in the state as they provide services to more than 1.8 million customers in just the Lower Peninsula has requested a rate hike for the second time this year. The last resolution was almost half a year ago as they settled on a 1.5% increase even though they requested a 5.7% increase. This time, they are looking to boost the price by $248 million.

This would result in an almost 12% inflation on residential bills, but they expect this to be challenged and the legal proceedings to go well into the summer of 2025. Consumers Energy says the rate hike is to provide funds to continue modernizing their infrastructure in ways that promote reliability, safety, and environmental awareness.

All of this was part of an upgraded gas delivery plan that Consumers Energy recently introduced as they are trying to improve the system while guaranteeing that households can be expected to pay $3 or less a day. Although this seems like a good plan, a lot of the pushback is coming from the Citizens Utility Board of Michigan.

They say that Michigan is headed in a direction to be net zero by 2025 and this infrastructure they are looking to build would not be needed in the future. The Citizens Utility Board will be questioning the wisdom of the plan that has produced the largest rate hike in recent memory.

They are also looking at adding remote control valves to respond to emergencies more quickly and update pressure regulation facilities and city hubs. We will find out within the next 10 months whether there will be a price increase at all and if so, how much will it rise.