Michigan PSC approves Consumers gas rate hike alongside savings for 10 state utilities

The Michigan Public Service Commission (MPSC) approved millions of dollars in changes this week, granting a $10.6 million rate hike for Consumers Energy Co.’s natural gas customers while saving customers of 10 other Michigan utilities around $379.5 million in a Credit A tax impact case.

Consumers was granted $10.6 million, only a fraction of the $178.2 million increase the company had initially requested. The change incorporates lowered corporate taxes made by the Tax Cut and Jobs Act of 2017. As a result, residential customers using 10,000 cubic feet of natural gas per month will see 44 cent increases beginning in September. Rates will not change for those whose household incomes remain at 150 percent of the federal poverty level, or below.

The money will go toward funding Consumers’ Gas Enhanced Infrastructure Replacement Program (EIRP), under which the company intends to replace around 70 miles of distribution, transmission, and storage pipe over the next 25 years. They will also be required to submit annual reports as part of a Pipeline Integrity Program.

In a separate case, the MPSC approved lowering revenue requirements for Indiana Michigan Power Co. (I&M) by $8,680,852, giving its customers — who use an average of 500 kilowatt hours of energy — a bill reduction of around $1.82 per month beginning in September. The lowered expectations are another result of the Tax Cut and Jobs Act, and the change will see $379.5 million returned to ratepayers of 10 utilities.

This is part of a Credit A tax impact case — the first of three processes under the MPSC’s consideration of TCJA effects. Credit A focuses on capturing savings and returning ratepayers the majority of money due under tax law adjustments. Credit B tracks refunds from January 1 and into the summer, while Calculation C will tally the impact of customer bills for those long-term items not accounted for under the other credits. I&M was the last remaining company needing to undergo Credit A assessments.