The Michigan Public Service Commission approved DTE Energy to increase revenue by $217,380,000, but the utility company says customers won’t see their bills go up.
This increase, approved on Thursday, Jan. 23, is 52% less than the $456.4 million DTE initially requested.
The commission said in a release that a residential customer using 500 kWh is expected to see a 4.65% increase in their monthly bill, which is $4.61, effective Thursday, Feb. 6. However, DTE released a statement saying that customers actually won’t see any increase in their bills.
“Our customers demand and deserve reliable energy,” a DTE spokesperson said. “DTE Energy is continuously improving our operations and driving down costs to keep energy affordable. Combined with DTE’s recent customer monthly bill reduction in the power supply cost recovery factor (PSCR), today’s order from the Michigan Public Service Commission means residential electric customers will not experience an increase in their monthly bills.”
In November, DTE’s PSCR was reduced by $300 million, lowering residents' bills by about $5 through the end of this year.
So, this November reduction offsets the cost customers would’ve seen from this recent approval, according to DTE.
Some of the projects that the commission approved the funds to be used for include the following:
- Upgrades to the 4.8 kilovolt (kV) system, which serves Detroit, Royal Oak, Birmingham, Ann Arbor and large parts of the Thumb. The upgrades include using more durable materials to replace poles, crossarms, and insulators, to reduce the number of downed wires that remain energized.
- An additional $87 million will go to DTE’s tree-trimming surge program so crews can increase the frequency of trimming around power lines.
- Repairing breakers, which recognize and isolate grid interruptions.
- Fixing aging infrastructure in and around downtown Detroit and Highland Park.
- Increasing the low-income utility bill assistance credit from $40 to $50 each month.
- Investing in infrastructure to support electric vehicle charging.
- Funding the portable generator program, which provides generators to vulnerable customers during outages.
DTE’s last rate increase was in December 2023, according to a release from the commission, when regulators approved a $368 million increase. This was a 40% decrease from the $622 DTE had requested.
