Consumers Energy, the regulated utility subsidiary of CMS Energy, received approval from the Michigan Public Service Commission on March 27, 2026 to move forward with a $226 million grid modernization plan that will serve nearly 2 million Michigan homes and businesses.
The approval includes a rate increase of $276.6 million, which will take effect on May 1, 2026. Residential customers using 500 kWh per month will see an average monthly bill rise of $6.46, or 6.1%, while the average bill for all customers is expected to increase by about $14, from $134 to $148.
The plan allocates $226 million to several specific initiatives: Lines Reliability Low‑Voltage Distribution, Resiliency Fractionalization, System Protection programs, and the Repetitive Outages Low‑Voltage Distribution program. The upgrades also cover tree trimming, line burial, stronger poles, faster automatic fault response, and enhanced physical and cyber protections.
In 2024, Consumers Energy’s average outage minutes per customer fell 21 minutes compared with 2023, and 93% of customers had power restored within 24 hours, up from 87% in 2023. Michigan as a state reduced average outage minutes per customer by nearly an hour between 2019 and 2024, underscoring the reliability gains this plan is designed to sustain.
The Michigan Public Service Commission’s decision followed a nearly year‑long regulatory process. The approved rate increase is lower than the utility’s original request of over $400 million, reflecting negotiations during the review.
This approval is a milestone in CMS Energy’s broader $24 billion five‑year capital plan, of which $14 billion is earmarked for renewable energy over the next decade. The plan supports the company’s 20‑year renewable energy strategy, which aims to add more than 13 GW of clean resources.
"We know the cost of everything is going up, from energy to health care to groceries. That's why we ensure that we're making smart, cost‑effective upgrades to secure the grid, fix problems before they happen, and improve reliability for our customers," said Kelly Hall, senior vice president of regulatory and legal affairs. "Consumers Energy works hard to help our friends and neighbors, through money‑saving programs and connecting people with assistance that helps manage bills."
"Consumers Energy is helping our customers by securing the grid and giving them the tools to reduce and manage their bills. Our Reliability Action Plan represents an investment that will lead to fewer and shorter power outages," said Greg Salisbury, senior vice president of electric distribution. "At the same time, we understand the impact of rising costs, so we will continue to help people lower and manage bills while making upgrades to power their lives more reliably."
"These investments are working and we're seeing the results in improved reliability, including some of the best improvements across the country," said Dan Scripps, Commission Chair. "I believe it's a constructive order and it will allow us to really get to work on a reliability action plan."
The approval not only strengthens Michigan’s electric grid but also provides a clearer path for Consumers Energy to meet its renewable energy and reliability targets while managing the cost impact on customers.
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