Consumers Energy Defends Customer Protections as Michigan Attracts Data Centers and Large Energy Users
Consumers Energy has forcefully defended new customer protection measures approved by Michigan regulators, positioning the policies as essential to responsible economic growth and long-term affordability for households and businesses across the state. The utility is opposing a legal challenge filed by Michigan Attorney General Dana Nessel that seeks to overturn recent rules governing how large, energy-intensive customers—such as data centers—are integrated into the electric system.
At the center of the dispute is a November 6 order issued by the Michigan Public Service Commission (MPSC), which established a framework for serving large-load customers while protecting existing ratepayers from bearing additional costs. The order created new guidelines to ensure that high-energy users pay the full cost of their service and contribute fairly to shared infrastructure expenses, rather than shifting financial burdens onto residential and small business customers.
Consumers Energy argues that the Attorney General’s petition for rehearing is without legal or economic merit and could undermine Michigan’s ability to attract major investments at a time when competition among states for data centers, advanced manufacturing, and technology-driven industries is intensifying.
Utility Pushes Back on Legal Challenge
Attorney General Nessel filed her petition this week, asking the MPSC to reconsider its November decision. Her challenge contends that the new tariff structure for large-load customers may not sufficiently protect ratepayers or align with regulatory standards.
Consumers Energy strongly disagrees.
“The attorney general’s challenge has no merit,” said Kelly Hall, senior vice president of regulatory and legal affairs at Consumers Energy. “The MPSC’s order creates a practical and balanced framework that allows Michigan to grow, attract new employers, and generate additional tax revenue—without placing undue cost pressure on existing customers.”
Hall emphasized that the commission’s order was the result of extensive review and stakeholder input, designed to modernize utility regulation as the state faces growing demand from energy-intensive industries.
Economic Growth and Community Benefits
Consumers Energy leaders say the MPSC’s decision reflects a broader economic development strategy that benefits communities across Michigan. Large customers such as data centers often bring substantial capital investment, long-term employment opportunities, and increased local tax bases, supporting schools, infrastructure, and public services.
“It is unfortunate that the Attorney General is taking what amounts to an anti-investment position,” said Lauren Snyder, senior vice president and chief customer and growth officer at Consumers Energy. “When businesses grow, families benefit. That means more job opportunities, stronger schools, and communities where people want to live and stay.”
Snyder noted that Michigan is competing nationally for data centers and advanced industries that are critical to the digital economy, artificial intelligence, cloud computing, and manufacturing innovation. Clear, predictable energy policies are a key factor in those investment decisions.
Protecting Existing Customers
A central argument from Consumers Energy is that new large customers improve the overall economics of the electric system. Under the MPSC’s order, energy-intensive customers are required to pay their full cost of service, including infrastructure investments needed to support their operations. In addition, these customers contribute to fixed system costs that would otherwise be borne entirely by existing customers.
Consumers Energy serves nearly 2 million homes and businesses and is legally obligated to provide service to all customers in its territory. The company says that responsibly structured large-load tariffs help spread system costs more broadly, reducing upward pressure on rates over time.
“New large customers strengthen the system for everyone,” the company stated. “They pay their share and help offset fixed costs that would otherwise fall on households and small businesses.”
Preparing for Rising Energy Demand
Looking ahead, Consumers Energy plans to address projected growth in demand through its upcoming Energy Supply Plan, which the company is scheduled to file next year. The plan will outline how the utility intends to secure sufficient energy resources to meet customer needs while maintaining reliability and affordability.
According to the company, the supply mix will include a combination of natural gas, renewable energy, and battery storage to support both existing customers and anticipated growth from large commercial and industrial users.
The company says this forward-looking planning is especially important as data centers require continuous, high-reliability power and are often among the largest single-site energy consumers on the grid.
Scope of the New Tariff
Under the MPSC’s November order, Consumers Energy’s new tariff would apply to customers with energy usage of at least 100 megawatts. Currently, Consumers Energy serves only one customer above that threshold, and that customer operates under a special rate structure established by the Michigan Legislature.
The new framework, however, is designed to prepare the state for future growth, as interest from data center developers and other large-scale users continues to rise.
By setting clear rules in advance, Consumers Energy argues that Michigan can avoid ad hoc negotiations and regulatory uncertainty while ensuring fairness for all customer classes.
Call for Reconsideration
Consumers Energy has urged the Attorney General to withdraw her challenge and allow the MPSC’s order to stand, warning that prolonged legal disputes could send negative signals to prospective investors.
“We intend to continue working hard to attract new businesses—including data centers—to Michigan in a way that benefits everyone,” Hall said. “We sincerely hope the Attorney General will reconsider and drop her challenge to the commission’s good work.”
Commitment to Reliability and Affordability
Consumers Energy remains Michigan’s largest energy provider, delivering natural gas and/or electricity to approximately 6.8 million residents across all 68 counties in the Lower Peninsula. The company says its mission remains unchanged: providing safe, reliable, and affordable energy around the clock.
As Michigan balances economic development with customer protection, Consumers Energy maintains that the MPSC’s decision strikes the right balance—supporting growth while safeguarding the interests of everyday customers.
“The future of Michigan’s economy depends on smart, forward-looking energy policy,” the company said. “This framework ensures growth that is fair, responsible, and sustainable for everyone.”
Source Link: https://www.cmsenergy.com/
