Michigan regulators approve $139,176,000 Consumers Energy gas rate increase

LANSING, Mich., Oct 15 — The Michigan Public Service Commission (MPSC) on Thursday approved a natural gas rate increase of $139,176,000 for Consumers Energy Co. in Case No. U-21981, a more than 42% reduction from the $240 million the company initially requested.

A typical residential customer using 75 ccf (hundred cubic feet) of natural gas per month will see an increase of $3.92, or 4.33%, in their monthly bill, the commission said. The new rates take effect Nov. 1. The commission set a return on common equity of 9.8% and a capital structure of 50% equity and 50% debt.

Consumers sought $234.2 million for its Enhanced Infrastructure Replacement Program, which replaces the gas mains most at risk of leaks. The commission approved $207 million, saying it removed unsupported funds to protect customer affordability. It also approved $66.3 million for a leak detection and repair program. The commission disallowed more than $7.9 million that Consumers sought for transmission pipeline integrity work, citing what it found was a pattern of over-projecting costs and under-spending on the program.