Overview:
-Metro Detroit energy customers brace for another rate hike request from DTE Energy.
-The utility's almost yearly filings have sparked public outcry over high bills and frequent outages.
-The Michigan Public Service Commission has 10 months to decide on the latest request.
DTE Energy will file another electric rate hike request on April 23, according to paperwork the company filed with Michigan regulators.
The move comes just months after the company secured a $217-million increase for metro Detroit energy customers. Previous rate hike requests have prompted public outcry from utility customers who complain of high utility bills and frequent outages, although the utility says the increases are needed to improve reliability.
Amy Bandyk, executive director of the Citizens Utility Board of Michigan, told Planet Detroit these almost yearly filings make it difficult for her organization to gather expert testimony to push back on DTE’s rate hike requests.
“There’s an extraordinary amount of time spent duplicating testimony when they file every year,” she said. “The utility can shoulder that burden much easier than the outside groups can.”
DTE’s residential rates are already among the highest in the Midwest and being pushed higher by annual rate hike requests, she said.
April’s rate hike request will come roughly 13 months after the company’s March 2024 electric rate case filing, which led to the $217-million increase approved in January. Prior to that, a February 2023 request resulted in a $368-million price increase.
A decade ago, rate cases were filed roughly every two years. That interval had fallen to 17 months in 2024, according to a report in MLive. Under Michigan law, utilities can file a rate hike request with the Michigan Public Service Commission every 12 months.
DTE Energy is working to connect customers with energy assistance and supported Michigan Gov. Gretchen Whitmer’s move to sign legislation that doubled funding for the Michigan Energy Assistance Program, which provides utility assistance to low-income households, DTE spokesperson Ryan Lowry told Planet Detroit in a statement.
The legislation also shifted income-eligibility requirements from 150% of federal poverty guidelines to 60% of state median income, potentially making the program available to an additional 335,000 households.
Residents complain of costly DTE bills, poor reliability
Past DTE rate hikes have prompted fierce opposition from DTE customers, who have criticized the utility’s poor reliability and costly bills. Hundreds of people showed up for a September hearing at Detroit’s Mumford High School, many complaining of rising costs, peak hour rate increases, and power outages that have forced them to pay for hotels or replace food in their refrigerators.
A February report from the Center for Biological Diversity found that DTE cut power to 150,000 customers for nonpayment in 2024 as its profits surged by 41%.
A hearing for the Great Lakes Water Authority’s recent 5.9% increase for wholesale customers also drew heated opposition from metro Detroiters, with some drawing attention to the combined expense of rising food, rent, and DTE bills.
“These hikes will hit struggling families the hardest,” Southwest Detroit resident Natalie Rivera said at the hearing. “Many of us already struggle to afford food, rent (and) utilities.”
DTE’s Lowry said further grid investments are needed to improve performance. The company’s work, combined with less extreme weather, improved reliability in 2024, he said, amounting to a nearly 70% reduction in time customers spent without power.
“Our upcoming rate case filing will build upon this success as we continue our work to improve electric reliability, deliver the cleaner energy and maintain the affordability our customers demand and deserve by ensuring bills remain as low as possible,” Lowry said.
The Citizens Utility Board of Michigan’s Bandyk said a recent state-ordered audit showed DTE continues to lag national practices on reliability.
“DTE’s comments in response to the audit show a lack of seriousness about dealing with the problems the audit uncovered,” she said.
“It is concerning that DTE is going to be asking for more money from ratepayers when they are not being forthcoming about how they are going to fix their poor reliability performance.”
DTE customers may not learn how much of a rate hike the utility is asking for until the rate case is filed next month. Michigan Public Service Commission spokesperson Matt Helms said that once a case is filed, the public can submit comments and interested parties may petition to intervene. Commissioners haven’t determined whether they will hold a public hearing for the rate hike request.
The MPSC has 10 months to decide on the rate case once it is filed. The MPSC provides additional information on the rate case process in this fact sheet and issue brief.
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