Michigan Regulators Allow Electric Rate Increase

DAVID EGGERT

LANSING, Mich. (AP) — State regulators are letting Michigan's second-largest utility raise residential electric bills later this week, but not as much as Consumers Energy wanted.

The Michigan Public Service Commission estimates the average Consumers Energy household will see a $2.99 increase on its monthly bill for six months, a bump of 3.5 percent. The Jackson-based utility originally sought to add about $10 to monthly residential bills, a double-digit percentage increase.

Regulators on Tuesday ordered Consumers Energy to partially offset the residential rate increase it plans to implement Thursday with proceeds from the 2007 sale and decommissioning of a nuclear plant.

"The result minimizes the effect on residential customers, which could have been as high as a 16 percent increase," said Public Service Commission Chairman Orjiakor Isiogu.

A new state law lets utilities automatically increase power bills on their own if regulators do not act within six months of a rate case being filed. Refunds with interest must be paid to customers if the commission later decides a utility has charged too much.