Prepare to pay more: Michigan regulators OK $100M rate hike for Consumers Energy

Consumer's Energy rate hike approved
Photo credit Getty Images - File

(WWJ/AP) Utility bills for some Michigan residents will be going up in 2021.

Michigan regulators have approved a $100 million electric rate hike for Consumers Energy — authorizing the state's second-largest utility to bill the average residential customer about $9 more per month, starting in January.

The increase for residents is nearly 12%, after factoring in other allowed adjustments.

The Michigan Public Service Commission says the Jackson-based utility sought the higher rates to fund upgrades to its distribution system and to meet its clean-energy goals by retiring coal-fired plants. The hike is 39% of what Consumers requested.

The order also lets the utility spend more to trim trees to reduce power outages.

To be clear, this rate hike affects Michiganders with electrical service through Consumers, and not those who have only gas service through the utility.

This rate hike comes amid the COVID-19 pandemic, which has left many Michiganders out-of-work and struggling to pay their bills. If you need help, information on payment plans for Consumers customers, as well as public assistance programs is available at this link.

Featured Image Photo Credit: Getty Images - File