Michigan regulators allow electric rate increase

Lansing, MI – LANSING, MI (AP)
State regulators are letting Michigan's second-largest utility raise residential electric rates, but not as much as the utility wanted.

The Public Service Commission on Tuesday ordered Consumers Energy Co. to offset any residential rate increase it plans to automatically implement Thursday with proceeds from the sale of a nuclear plant.

Regulators estimate the average Consumers Energy household will see a $2.99 hike on their monthly bill for six months, an increase of more than 3%.

Consumers originally sought to add $10 to monthly residential bills.

A new state law lets Consumers Energy increase power bills temporarily since regulators did not prevent or delay the utility's rate request.

The commission likely will issue a final order before mid-November.