Michigan regulators on October 15 approved a $139.2 million natural gas rate increase for Consumers Energy, about 58% of what the utility asked for. A typical residential customer will pay about $3.92 more a month starting November 1, just as the heating season begins.

Key takeaways

• The Michigan Public Service Commission (MPSC) approved $139.2 million a year in new gas revenue for Consumers Energy, down from the roughly $240 million the company requested.
• A typical home using 75 hundred cubic feet (ccf) of gas a month will pay about $3.92 more per month (+4.33%), or roughly $47 a year, from November 1.
• Most of the money goes to replacing aging gas mains and service lines and to leak detection. A separate Consumers Energy request to raise electric rates by $456 million a year is still pending.

What happened

Consumers Energy, which serves about 1.8 million natural gas customers, filed the request in October 2025. That was less than a month after the MPSC had approved a $157.5 million gas increase for the same utility. The company originally asked for about $240 million a year, which the state Attorney General’s office described as a 10% increase.

On October 15 the commission approved $139.2 million, more than 42% less than requested. Regulators set the company’s return on common equity, the profit it may earn on the shareholder-funded part of its investments, at 9.8%, with a capital structure of 50% equity and 50% debt.

According to the commission’s decision as reported by local media, the approved spending focuses on safety work. It includes $207 million for the utility’s Enhanced Infrastructure Replacement Program (out of $234.2 million requested), which swaps the mains most at risk of leaks for new plastic and steel pipe, and $66.3 million for leak detection and repair. Regulators rejected more than $7.9 million in transmission pipeline integrity costs, some storage pipeline replacement projects and a customer-service cost tracker. They said these costs were not sufficiently justified.

Attorney General Dana Nessel, whose office took part in the case, had urged regulators to hold the increase to no more than 3.5%. Her office argued the utility inflated its capital spending projections. Consumers Energy said in a statement that it knows “any increase in costs matters to our customers” and that the work will strengthen the system used to heat homes.

What it means for your bill

The commission’s benchmark is a residential customer using 75 ccf of gas a month, averaged over the year. For that household:

• Monthly increase: $3.92
• Yearly increase: $3.92 × 12 = $47.04
• Implied typical bill: because $3.92 equals 4.33% of the bill, the average monthly bill before the change works out to about $3.92 ÷ 0.0433 ≈ $90.50, rising to about $94.45.

Keep in mind that 75 ccf is an annual average. Michigan households burn far more gas in January than in July, so winter bills are where you will notice the change. As a rough illustration only: if the increase were applied mostly per unit of gas used, a cold month with double the average use (150 ccf) would see an increase closer to $7–8 rather than $3.92. Fixed monthly charges and the gas supply cost, which is passed through separately and changes with the market, also affect what you actually pay.

For Consumers Energy customers who also buy electricity from the company, the pending $456 million electric request could add to household energy costs later on. No decision on that case has been made.

What you can do

• Seal leaks before the cold sets in. Drafty doors and windows are one of the cheapest fixes. See our weatherstripping guide and our 15 practical tips to save on heating this winter.
• Smooth out winter spikes. If big January bills are the problem, ask about a level-payment plan. Our guide to budget billing pros and cons explains the trade-offs.
• Know your shutoff protections. Michigan’s Winter Protection Plan runs from November 1 to March 31. Customers aged 65 or older, those receiving state cash or food assistance or Medicaid, and households at or below 150% of the federal poverty level can be protected from shutoffs if they enroll. Ask your utility how to sign up.
• Apply for heating help early. If you are struggling with bills, call 211 or contact your utility to ask about state and federal energy assistance before arrears build up.

Sources

• Michigan Attorney General: MPSC Approves $139 Million Rate Hike for Consumers Energy (Oct. 15, 2026)
• WILX: MPSC approves nearly $140 million Consumers Energy natural gas rate increase (Oct. 15, 2026)
• WWMT: Natural gas rates to rise by 4.3% following $139M Consumers Energy rate hike approval
• Michigan News Source: Consumers Energy gets another rate hike as $456 million electric increase looms
• Michigan Gas Utilities: Winter Protection Plan (dates and eligibility)

Written by The Daily Economy editorial team with AI assistance and checked against the sources above. Read our editorial policy.