Consumers Energy and Nicor Gas face scrutiny over rate hike requests

Utility companies in Michigan and Illinois are facing regulatory developments regarding natural gas rate increases. In Michigan, Consumers Energy has announced its intent to seek a new rate hike, likely to be filed this December, shortly after the Michigan Public Service Commission approved a $139.2 million annual increase effective October 15. Michigan Attorney General Dana Nessel announced her office will intervene in the upcoming case to represent consumers, noting that major utilities often file successive applications that shift administrative costs to customers.

In Illinois, the Illinois Commerce Commission approved an $82 million rate hike for Nicor Gas following a settlement with the attorney general’s office. This negotiated amount is significantly lower than the company’s original request. The increase is expected to add approximately $2 per month to residential bills starting in November. The settlement also established a $15 monthly fixed charge, down from the previous $21, and set a 9.48% return on equity for shareholders, a compromise between the company’s initial request and the lower rate sought by consumer advocates.