MICHIGAN, USA — Consumers Energy agreed to pay a $1 million fine following an investigation into faulty meters, estimated billing and delays in new service hookups.
The utility company was investigated by the Michigan Public Service Commission (MPSC) after customers complained about the issues at a public forum in 2023.
The MPSC Customer Assistance Division also took complaints from customers about broken electric meters, extended billing cycles with excessively high estimated electric use and lengthy delays in providing new electric and gas service hookups for customers.
13 ON YOUR SIDE also received complaints from customers about the high estimated electric use. The 13 Help Team helped several customers settle their incorrect bills with the utility company, getting over $20,000 back into the pockets of the customers.
MPSC says the meter issue came about after Consumers Energy moved from 3G-based meters to 4G-based meters. The utility was found to have "supply and staffing constraints" that hindered the transition between the meters. MPSC says Consumers failed to notify them of these issues.
Throughout the investigation, MPSC also learned that Consumers was estimating bills for some customers using 3G meters even before 3G service was discontinued.
“It is a fundamental job for a utility to measure the amount of electricity used and then accurately bill their customers,” Commissioner Katherine Peretick said. “There was a clear and obvious failure here, and this $1 million fine and the corrective actions required in the settlement agreement will hopefully ensure this doesn’t happen again.”
Consumers was also found to be in violation of standards requiring 90% of new service installation to be completed within 15 days.
MPSC has determined that "Consumers has shown significant improvements with reduced estimated billing, malfunctioning meters and delays in new service. As a result, parties in the case — MPSC Staff, Michigan Attorney General Dana Nessel’s Office and Consumers — reached a settlement agreement under which the utility will pay a $1 million fine that it cannot recover through customer rates."
In addition to the $1 million fine, the settlement also requires Consumers Energy to:
- Disclose any known issues that may affect future company requests for waivers of MPSC rules.
- Not seek recovery of company costs resulting from estimated customer bills.
- Submit semiannual reports for two years detailing consecutive meter reading estimates, timelines for new electric and gas service installations, and reporting meter failures.
- Improve its processes for new service installations.
Brian Wheeler with Consumers Energy shared the following statement regarding the fine:
“Consumers Energy remains committed to doing right by its customers, and we are focused on improving our performance every day. We appreciate the opportunity to work with the MPSC and other stakeholders to identify and resolve these issues, and are committed to ensuring they won’t happen again. We want our customers to count on us 24/7, and that starts with delivering the service our customers and the MPSC expect.”
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