FERC Staff Protests Consumers Energy's Dubious Natural Gas Rate Math
Published Date: 3/25/2026
Notice
Summary
Consumers Energy wants to use a special rate for moving natural gas across state lines, but the Commission staff isn’t convinced their math adds up. They say Consumers Energy didn’t show enough proof that their rates are fair or explain how they split costs properly. This could affect gas customers and the company’s pricing soon, as the Commission reviews the case and waits for better info.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
FERC Staff Protests Proposed Gas Rate
Consumers Energy asked to use its state-approved Transmission Only Transportation (TOT) rate for interstate gas service in filings made May 19, 2025 (amended Sept 12, 2025) and a compliance filing on February 2, 2026. Commission staff formally protested on March 20, 2026, saying the company did not show the TOT rate is fair and equitable; this review could affect gas customers and the company’s pricing as the Commission considers the matter.
Staff Requires Cost Allocation Evidence
Commission staff says Consumers Energy did not provide evidence to back claims that most compression supports storage, that its TOT rate excludes variable costs, or that forward-looking costs are fixed. Staff asked for supporting items such as a breakdown of Operation and Maintenance expenses or a projected cost of service so it can determine compliance with the December 18, 2025 order.
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