Mich.'s Utilities Seek Double-digit Rate Hikes

By DAVID EGGERT

LANSING, Mich. (AP) — Unless state regulators step in, Michigan's two major utilities may raise residential electric bills by double-digit percentages just as many customers are losing their jobs or having an ever-harder time paying their bills.

The typical Consumers Energy household could pay 11 percent more starting in May, adding $10 to their monthly bill and $125 annually.

Beginning in July, Detroit Edison's average resident could pay 11 percent more, or about $7 more per month and $83 more a year.

The rate hikes can take effect automatically under a new state law if the Michigan Public Service Commission doesn't act within six months of the requests being filed.

Customers will get refunds with interest if regulators approve a lower rate within one year of the original request. Utilities also have the option of raising rates by a lesser amount while waiting for a final decision.

Residents and advocacy groups for the poor and elderly oppose the increases.