Commission approves continued investments in safety for Consumers Energy’s natural gas system

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The Michigan Public Service Commission today approved continued Consumers Energy Co. investments in the safety and reliability of its natural gas system, supporting projects to replace aging gas mains and service lines while rejecting costs that weren't found to be effective or sufficiently supported (Case No. U-21981).

Among the improvements the Commission approved are:

• Consumers' Enhanced Infrastructure Replacement Program aimed at replacing gas mains most at risk of leaks with modern, lower-maintenance plastic and steel mains. Consumers sought $234.2 million for the program, but the Commission approved $207 million, removing unsupported funds to protect customer affordability.
• Consumers' leak detection and repair program, which aims to reduce gas leaks by replacing infrastructure in emergent or immediate conditions. The Commission approved $66.3 million for this program.
• Ongoing investment in the utility's program to replace vintage service lines made of materials significantly more at risk of corrosion-related leaks with safer, modern alternatives.

The Commission today approved a rate increase of $139,176,000, a more than 42% reduction from the $240 million the company initially requested. The Commission set a return on common equity of 9.8% and a capital structure of 50% equity and 50% debt.

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 new rates take effect Nov. 1.

The Commission declined to approve costs that weren't sufficiently justified or reasonable. The Commission disallowed more than $7.9 million the company sought for transmission pipeline integrity work, finding a pattern of over-projecting of costs and under-spending on this program.

Other disallowed costs included those for storage pipeline replacement projects where the Commission found plans premature and timelines uncertain, and for the company's customer order service tracker because the Commission found that Consumers did not produce cost savings data or show that savings have been used to offset other expenses.

Intervenors in the case include the Michigan Department of Attorney General; Michigan Environmental Council; Citizens Utility Board of Michigan; Retail Energy Supply Association; Lansing Board of Water & Light; Michigan State University; Association of Businesses Advocating Tariff Equity, and Energy Michigan. MPSC Staff also participated in the proceeding.

MPSC OPENS NEW REVIEW OF CONSUMER STANDARDS AND BILLING RULES

The MPSC today directed MPSC Staff to establish a workgroup to take a fresh look at the Consumers Standards and Billing Practices for Electric and Gas Residential Service (Case No. U-22237). These standards govern matters including applying for service, billing and payment standards, meter reading procedures, meter accuracy and errors, complaint procedures and dispute resolution, shutoff and restoration of service, and more. The Commission has received numerous comments from interested organizations and individuals about the need to modernize the standards, and this review is responsive to those requests. The Commission directed the workgroup to analyze and review billing rules protections to address concerns raised with the current rules, outdated references to technology, data management and customer communication practices and preferences, and new initiatives and trends through the proposal of new rules. The workgroup will provide a foundation for potential future rules changes so that the billing rules are flexible and responsive to changing technology while ensuring safe, reliable electric and gas service. Once completed, the Staff shall file a preliminary report in the docket that outlines the workgroup's efforts and provides proposed changes to the ruleset. The Commission directed MSPC Staff to form a collaborative workgroup consisting of utilities, customer protection advocates, and other interested organizations and individuals to develop the preliminary report. Those interested in participating may find more information at the MPSC's Billing Rules Review webpage.

MPSC TO HOLD PUBLIC HEARING ON UPDATED SHUTOFF PROTECTIONS FOR CRITICAL CARE CUSTOMERS

The MPSC will hold a public hearing Nov. 9 at 10 a.m. to gather public input on updates that improve shutoff protections for medically vulnerable electric and natural gas customers (Case No. U-21939). The Commission has been reviewing shutoff protections through the MPSC's Critical Care Collaborative, working to identify ways to maintain protections for medically vulnerable customers while also preventing them from incurring unmanageably high bills. The protections cover households with critical care customers who require home medical equipment or life support and for whom a service interruption would be immediately life threatening. The meeting on Nov. 9 will be at the Commission's offices at 7109 W. Saginaw Highway, Lansing. Written comments may be mailed to Michigan Public Service Commission, Executive Secretary, P.O. Box 30221, Lansing, MI 48909, or emailed to [email protected]. All comments must reference Case No. U-21939 and must be received at the MPSC by 5 p.m. Nov. 23, 2026.

MPSC APPROVES 2-YEAR EXTENSION OF AT&T MICHIGAN'S PERFORMANCE MEASURES AND REMEDY PLAN

The MPSC today approved an amendment extending for two years AT&T Michigan's performance measures and remedy plan that the Commission uses to review the telecommunications company's compliance with obligations to provide nondiscriminatory access to its facilities and services, including unbundled network elements, to competitive local exchange carriers, or CLECs (Case No. U-11830). The performance measures and benchmarks were first enacted in 1999 and have been modified over the years through collaborative reviews with AT&T Michigan, interested CLECs, and staff from state regulatory commissions in Michigan, Illinois, Indiana, Ohio, and Wisconsin. In the most recent collaborative review, on Sept. 25, 2026, AT&T Michigan proposed a two-year extension of the current plan, with no objections noted. Today's approval moves the effective date of the remedy plan to Dec. 31, 2028.

COMMISSION APPROVES CONSUMERS ENERGY CO.'S UPDATED PURPA AVOIDED COST RATES

The MPSC approved Consumers Energy Co.'s application for approval of the utility's updated avoided cost rates under the federal Public Utilities Regulatory Policies Act of 1978 (PURPA) (Case No. U-21090). The Commission's ex parte approvals include the update to Consumers' full avoided costs rates and the utility's standard offer contract, standard offer tariffs, and updated bundled outflow rate for the Simple Renewable Program. While Consumers is not currently required to offer unfilled capacity to PURPA QFs, the company filed a new integrated resource plan on Sept. 3, 2026 (Case No. U-22127) and a new determination of the company's capacity need will be decided in that case based on the evidence in that record. More information about PURPA is available in an MPSC issue brief.

COMMISSION APPROVES DTE ELECTRIC CO. POWER PURCHASE AGREEMENT FOR SOLAR FACILITY, OKs TWO OTHER COMPANY-OWNED SOLAR PROJECTS

The MPSC approved DTE Electric Co.'s application for approval of a power purchase agreement (PPA) with Blazing Star Solar LLC as well as approval of two company-owned solar projects (Case No. U-21193). The approvals represent 360 megawatts (MW) of a total request for proposals for 1,350 MW of solar that DTE Electric issued in 2025 as the utility works to meet the terms of its long-term integrated resource plan approved in 2023 with the aim of adding 15,000 MW of solar and wind energy. The Commission approved a 20-year PPA for the Blazing Star Solar Project in Allegan County with an expected levelized cost of energy (LCOE) of $96 per megawatt hour (MWh). The Commission also approved module supply agreements and master service agreements for two company owned solar facilities: the 50 MW Keystone Solar Project in Iosco County with an LCOE of $83 per MWh and the 185 MW Peatville Solar Project in Sanilac County with an LCOE of $76 per MWH.

MPSC APPROVES CONSUMERS ENERGY'S POWER SUPPLY COST RECOVERY RECONCILIATION, WITH MODIFICATIONS

The MPSC approved Consumers Energy Co.'s application for approval of its power supply cost recovery (PSCR) reconciliation for the 2024 calendar year, with modifications (Case No. U-21424). The Commission set a net PSCR underrecovery balance of $131,192,350, including interest, as the utility's new PSCR reconciliation beginning balance. The Commission directed that Consumers' net financial compensation mechanism (FCM) overrecovery balance of $3,962,639, including interest, shall be incorporated into an updated FCM surcharge tariff beginning Jan. 1, 2027. The Commission changed the interest rate for any FCM overrecovery balance to the ROE rate, which is parallel to what state law directs for PSCR overrecovery. Intervenors in the case were the Michigan Department of Attorney General; Association of Businesses Advocating Tariff Equity; and several biomass merchant plants, or BMPs, that provide electricity to the utility: Cadillac Renewable Energy LLC., Genesee Power Station LP, Grayling Generating Station LP, T.E.S Filer City Station LP, National Energy of Lincoln LLC and National Energy of McBain LLC. MPSC Staff also participated. The Commission approved the BMPs' request for $17,545,921 in capped costs and $746,112 in uncapped costs and set the 2024 monthly limit for recovery of fuel and operations and maintenance costs at $1,462,160 per month.

MPSC INVITES PUBLIC COMMENT ON PROPOSED CHANGES TO TRAINING STANDARDS FOR EMERGENCY 911 SERVICE PERSONNEL

The MPSC will hold a public hearing on proposed amendments to the Emergency 9-1-1 Service Standard of Training (Case No. U-21905). The Commission this year initiated updating the standards to reflect changes in technology and training requirements for public safety answering point personnel, which is now moving through the state's administrative law process. The proposed rules will be published in the Michigan Register today. The public hearing will be at 10 a.m. Nov. 19, 2026, at 7109 W. Saginaw Highway, Lansing. Written comments may be mailed to Michigan Public Service Commission, Executive Secretary, P.O. Box 30221, Lansing, MI 48909, or emailed to [email protected]. All comments must reference Case No. U-21905 and must be received at the MPSC by 5 p.m. Nov.19, 2026.

EZEE FIBER MICHIGAN LLC GRANTED PERMANENT BASIC LOCAL EXCHANGE SERVICE LICENSE

The MPSC granted Ezee Fiber Michigan LLC a permanent license to provide basic local exchange phone service throughout Michigan (Case No. U-22115). The Commission previously granted the company a temporary license in August. The Commission noted that granting the permanent license, condition on full compliance with the Michigan Telecommunications Act, will expand opportunities for competition in telecommunications services.

COMMISSION SEEKS COMMENT ON RECOMMENDATIONS IN MPSC STAFF CAPACITY DEMONSTRATION WORKGROUP REPORT

The MPSC today invited public comment on recommendations in the MPSC Staff's Capacity Demonstration Workgroup 2026 report (Case No. U-22142). The Commission in July 2026 directed MPSC Staff to convene a workgroup to consider the impacts to Michigan's planning process stemming from the changes made by the grid operator for most of Michigan, the Midcontinent Independent System Operator, to show how it accredits resources and to recommend changes to the capacity demonstration process related to a 5% limit on planned resource auction purchases. Interested organizations and individuals may filed comments by 5 p.m. Nov. 13, 2026, by mail to Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, Michigan 48909, via the Commission's E-Dockets website or by email to [email protected]. Comments must reference Case No. U-22142.

COMMISSION APPROVES CONSUMERS ENERGY CO. POWER PURCHASE AGREEMENT WITH ZEELAND FARM SERVICES

The Commission approved a power purchase agreement (PPA) between Consumers Energy Co. and Zeeland Farm Services Inc. for the 0.8 megawatt output of the company's co-generation station powered by landfill gas (Case No. U-22144). The Commission approved a PPA between the utility and Zeeland for a five-year term beginning May 1, 2026, to May 1, 2031, at an approximate cost of $596,149.

The MPSC serves as an expert, impartial regulator committed to consumer protection, fairness and transparency. For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the MPSC on Facebook, X/Twitter, LinkedIn or Instagram.

To look up cases from today's meeting, access the MPSC's E-Dockets filing system.

Watch recordings of the MPSC's meetings on the MPSC's YouTube channel.

DISCLAIMER: This document was prepared to aid the public's understanding of certain matters before the Commission and is not intended to modify, supplement, or be a substitute for the Commission's orders. The Commission's orders are the official action of the Commission.

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