Michigan Regulators Allow Electric Rate Increase

Consumers Energy, which has 1.8 million customers, was reviewing Tuesday's order to see what effect it will have on business customers. To meet requirements under the new state law, the utility was told to continue phasing in "cost of service" power rates.

That means business rates will go down or be held in check while residential rates will go up. Prices historically have been skewed so residents pay less than the actual cost of electricity, while businesses pay more.

Consumers Energy spokesman Jeff Holyfield said the order will help the utility, a subsidiary of CMS Energy Corp., make investments and add jobs.

Residents and others opposed the company's proposed double-digit increase on residential bills at a time people are losing jobs and having more trouble paying bills. More recently, Consumers Energy filed papers requesting an interim $4 a month residential hike while waiting for regulators to rule on the $10 rate increase. The commission likely will issue a final order by mid-November.

"We're glad the Public Service Commission is sensitive to the economic troubles facing many of Consumers' residential customers," said Sharon Parks, president and CEO of the Michigan League for Human Services, an advocacy group for the poor.