Lansing, Mich. — Michigan regulators have authorized Consumers Energy to raise natural gas rates by $40 million annually, but customers should see a drop in their bill.

The average residential customer’s bill will fall by $1.69 a month, effective in May.

The Jackson-based utility had asked for a nearly $85 million rate increase last summer. It then self-implemented a $60 million hike in January.

But the Michigan Public Service Commission this week approved a settlement agreement that includes a rate hike that is 53 percent below what the utility requested. It’s a 1.6 percent residential increase over rates set in the last natural gas rate case.

Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Read or Share this story: