Consumers Energy agrees to $1M over faulty electric meters, billing practice

Consumers Energy, one of Michigan's largest utility companies, has agreed to pay a $1 million fine after customers complained last year about faulty electric meters at their homes, which caused the company to provide estimated electric bills for thousands.

The Michigan Public Service Commission approved a settlement agreement with Consumers during their Thursday meeting. Last year, the board called for an investigation and later issued a show cause order to Consumers over the frequency of estimated electric bills it was providing to customers.

The issue, according to Consumers, arose from changes in the network connecting the electronic meters, as well as poor estimates on how many meters from the vendor that provided them were defective. Consumers, last year, replaced the bulk of electric meters which remained reliant on 3G to operate, after Verizon stopped providing 3G service.

MPSC staff determined the utility "has shown significant improvements with reduced estimated billing, malfunctioning meters and delays in new service," according to a press release.

As part of the settlement, Consumers cannot seek to recoup the $1 million in any future rate cases. Consumers also agreed to not seek any recovery costs related to the estimated bills. The fine goes into the state's general fund.

More: Consumers Energy's faulty meters, customer complaints spur action from Michigan regulators

Consumers also agreed to provide reports for the MPSC on its meter reading practices and meter failures, along with timelines for new electric and gas service installations.

“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 in a statement. “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 Energy is based in Jackson and provides electric service to 1.8 million people in Michigan's Lower Peninsula. The company, along with other privately-owned utilities, is regulated by the MPSC.

Contact Arpan Lobo: alobo@freepress.com. Follow him on X (Twitter) @arpanlobo.

This article originally appeared on Detroit Free Press: Consumers Energy, state regulators agree to $1M fine for faulty meters