x
Breaking News
More () »

Consumers Energy ordered to defend use of billing estimates, faulty meters as MI regulatory probe advances

If regulators determine there was a violation, consequences for its months of estimates, which led to large bills, could include fines and remedial action.

MICHIGAN, USA — Michigan regulators have ordered Consumers Energy to explain why it believes chronic installation delays and months of consecutive estimates—which led to many customers receiving invoices for hundreds of dollars more than those to which they were accustomed—shouldn’t constitute a violation of state utility rules.

Tuesday’s show cause order, issued by the Michigan Public Service Commission or MPSC, marked progress with regard to a 13 Help Team investigation launched earlier this year after dozens of viewers relayed their concerns.

The directive is one of the steps the commission has the ability to undertake in addressing disputes.

Regulators became involved in July, with the MPSC announcing it would investigate hundreds of similar complaints.

Customers alleged they had been charged well over the usual amount, had busted utility meters or suffered installation delays tied to the utility’s transition from an older system to the modern 4G network.

The 13 Help Team published multiple reports detailing similar circumstances.

Consumers Energy filed its response to the probe by the original August deadline imposed by state regulators.

At the time, the utility suggested it was then well on its way to replacing the faulty equipment, though, in its response, Consumers appeared to blame many of the issues on its meter vendor.

Public Service Commission staff filed a preliminary response in late September with some of their findings.

This week’s order revealed investigators found the utility had been estimating monthly usage, in some cases, “even before cellular phone companies discontinued operating 3G service in January 2023, because the meters were not working and showing blank screens, allowing neither customers nor Consumers to pull actual readings from the meters.”

The show cause order requires Consumers Energy to submit testimony, arguing why it should not be held in violation of the rules tied to service quality, reliability and billing practices by November 14.  

Penalties, the MPSC clarified, could include fines or remedial actions.

In response to an inquiry submitted by 13 OYS, Consumers Energy released the following statement:

“We are reviewing the order. In the meantime, Consumers Energy remains committed to doing right by its customers, and we are focused on continuous improvement. We are working diligently to deliver the service our customers and the MPSC expect.”

The Commission, according to a Tuesday media release, had also ordered staff members to look into other potential rule violations, gauge the reliability of the data in Consumers’ August response and to testify regarding its findings.  

A virtual pre-hearing is scheduled for December 4.

Before You Leave, Check This Out