LANSING – Consumers Energy customers will see a rate increase next month, but not as much as the utility had requested. Business customers will see even less of a hike as their support of residential customer rates is removed.
The order (case No. U-15245) provides an overall 2 percent increase, or about $27.47 million annually. But it also shifts $20 million from commercial and industrial customers to residential customers to reflect the latter’s true costs of service.
“This rate alignment sends the message that Michigan is a good place to do business, where electric rates are just and equitable and economic development is valued,” said PSC Chair Orjiakor Isiogu.
Businesses that add at least 1 megawatt of demand and maintain that demand for five years would also receive a credit over the next five years as an economic development incentive.
The utility had requested $68.87 million, but the commission found it had $46.2 million in excess revenue for 2008.
In addition to the increase resulting from deskewing, residential customers also pay a $6 monthly access charge in place of the current minimum usage charge.
To help offset the increases, the order provides a $6 credit for low-income residents and a $3 credit for senior citizens.
Some of those increases are offset by the elimination of the $69.5 million surcharge that had been added for the purchase of the Zeeland Generating Station.
School districts and colleges on the utility’s system will see further rate reductions, with a usage-based discount on top of the change from deskewing.
The order gives the utility 30 days to reconcile its sale of Palisades Nuclear Plant and until October 1 to reconcile transactions related to the closed Big Rock Nuclear Plant.
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