Mich.'s Utilities Seek Double-digit Rate Hikes

"We're talking about investments that create jobs. We're talking about investments that expand the tax base in Michigan," Holyfield says. "We think we've made a good case why this rate increase is needed."

He says Consumers' proposed $215 million rate increase includes more help for low-income customers.

Edison officials say the utility's proposed $378 million increase is needed to cover rising expenses and because it's making less money because customers are buying less electricity.

Spokesman Len Singer says the company needs to spend money to upgrade the distribution system and reduce pollution. He says Edison's work force is down from 11,500 in 2001 to about 9,300 today.

"In spite of these efforts, the massive downturn in Michigan's economy — combined with the steep decline in the stock market — has left us with little choice but to seek an increase in rates," Singer says.

Nearly 90 percent of Michigan's electric customers buy their power either from Jackson-based Consumers Energy, a subsidiary of CMS Energy Corp., or Detroit-based Edison, whose parent company is DTE Energy Co.