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Michigan regulators approve 2.28% DTE gas rate increase. Here’s what this means for residents

Customers will see increase of over $2 on monthly bills

DTE Energy is shown in Detroit, Thursday, May 18, 2017. (AP Photo/Paul Sancya) (Paul Sancya, Copyright 2017 The Associated Press. All rights reserved.)

The Michigan Public Service Commission approved an average increase of 2.28% in gas rates for DTE Gas Company customers.

DTE Gas Company, a subsidiary of DTE Energy, filed a request in January to raise rates by $266 million. DTE said this increase would fund infrastructure investments, provide funding to update its natural gas transmission and distribution system, and support maintenance costs.

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The requested amount included $106 million that was already reflected in rates from a surcharge that had already been approved. This meant that it would have been a $160 million increase for DTE customers.

But, Michigan regulators approved a $113,788,000 rate increase, which is a 57% reduction from what was requested.

What this increase means for DTE customers

An average resident using 100 ccf, or a hundred cubic feet, of natural gas will see their bills increase by $1.98 per month.

DTE customers will also see an increase of 66 cents each month due to the Infrastructure Recovery Mechanism (IRM) surcharge.

This surcharge will increase annually, and customers will see an increase of $6.28 by Jan. 1, 2029.

“The Commission approved a lower authorized rate of return on common equity of 9.8%, down from the prior approved 9.9%, and a capital structure of 50% equity and 50% debt,” according to the release.


About the Author
Sara Powers headshot

Sara Powers joined WDIV as a digital content producer in Oct. 2024 and has been covering Metro Detroit news since 2021.

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