Consumers Energy Co. - CONSUMERS ENERGY ELECTRIC RATE CASE U-21389

ELECTRIC RATE CASE U-21389*

On May 1, 2023, Consumers Energy filed an application with the Michigan Public Service Commission seeking an increase in its electric generation and distribution rates based on a test year ending February 28, 2025. The request seeks authority to recover costs related to new infrastructure investment primarily in distribution system reliability and cleaner energy resources. The proposed overall rate of retuis based on a 10.25% authorized retuon equity. In addition, Consumers is requesting recovery through a surcharge of $9 million incurred in 2022 related to certain distribution investments above U-20963 rate levels. The $216 million total request is detailed below.

		Company	Explanations
	Item		Filing
			(MM)	(MM)
1.	Investment	$118	Distribution: $171 (including IRM, $6),
					Generation: $44,
					Working Capital and Reg Assets Amortizations: $15,
					KaUnits 1 & 2 removal: $(108),
					Other: $(4)
2.	O&M	14	Distribution: $13,
					Compensation/Benefits: $13,
					Generation: $4,
					Corporate and Other: $(4),
					Demand Response: $(12)
3.	Gross Margin	(2)	Sales Mix: $(15),
					Miscellaneous: $13
4.	Cost of Capital	77	Debt Rates: $30,
					ROE 10.25% Versus Authorized 9.9%: $29,
					Capital Structure: $18
5.	Total before surcharge	$207
6.	Deferral Surcharge		9
7.	Total		$216

Ratemaking	Existing					After-Tax
Capital Structure %	(U-21224)(1)	As Filed	Annual Cost	Weighted Costs
Long Term Debt	40.18%	39.96%	4.14%	1.66%
Short Term Debt	0.88		1.08		4.79	0.05
Preferred Stock	0.15		0.14		4.50	0.01
Common Equity	41.56(2)	42.58(3)	10.25	4.36
Deferred FIT	16.71		15.79		0.00	0.00
JDITC/Other	0.52		0.45			0.03
		100%	100%		6.11%(4)
Rate Base and	Existing
RetuPercentage	(U-21224)(1)	As Filed
Rate Base (billion)	$13.38(5)	$14.35(5)
Retuon Rate Base (%)	5.66		6.11
Retuon Equity (%)	9.90		10.25

(1)Assumed. The outcome of Case No. U-21224 was a Commission-approved settlement agreement which did not specifically identify these items.

(2)Equivalent to 50.75% on a financial basis.

(3)Equivalent to 51.50% on a financial basis.

(4)Equivalent to 7.60% pre-tax basis.

(5)Excludes RPS renewables of ~$1.2 billion.

*Electric Rate Case U-21389 can be accessed at the Michigan Public Service Commission's website: https://mi-psc.force.com/s/

Attachments

• Original Link
• Original Document
• Permalink

Disclaimer

Consumers Energy Co. published this content on 01 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 May 2023 09:19:55 UTC.