Overview:

  • Michigan regulators approved a plan that rewards DTE Electric for reliability improvements that still fall below national averages through 2029, says Harvey Bell.
  • DTE customers lose power for four to seven hours annually while the nation's best utilities keep outages to just over one hour per year, says Bell, an engineer.
  • Advocates pushed for tying incentives to top-quartile performance standards but regulators chose targets based on DTE's recent below-average performance.

The Michigan Public Service Commission’s recent decision to grant performance incentives to DTE Electric was pitched as a move toward better reliability. 

For Detroiters and Michiganders who’ve weathered years of lengthy outages, spoiled groceries, missed school days, and lost wages, the decision doesn’t go far enough. Instead of holding DTE to the standards of the nation’s best utilities, the commission chose a plan that rewards the company for small improvements — even though Michigan will still lag behind most states on reliability for years.

DTE and Consumers Energy, Michigan’s two largest utilities, have struggled for decades to keep the lights on. DTE customers typically lose power for four to seven hours a year — far longer than people in states with stronger electric grids. This is ​​according to a comparison of DTE and Consumers Energy reliability against the most reliable utilities in the nation using the Institute of Electrical and Electronics Engineers national database.

The best utilities across the country keep annual outage times to just over one hour. Restoration times tell the same story: while top utilities bring the power back in under 90 minutes, DTE often takes two to four hours or more. These aren’t just numbers. They mean real impacts for Detroit families and local businesses.

With this backdrop, the Michigan regulators had a chance to send a strong message that the state won’t settle for less. Instead, the new incentive plan lets DTE earn bonuses for meeting goals that are still below the national average through at least 2029. 

The targets are anchored to DTE’s 2020–2024 performance and require only about a 1% improvement each year. Multiple audits and benchmarking studies have placed DTE near the bottom among large utilities for outage length and restoration speed, yet this framework treats small steps as deserving of big rewards.

Advocates like the Great Lakes Renewable Energy Association, which has filed a petition for a rehearing of DTE’s performance incentives, urged the commission to be bolder. They pushed for tying incentives to top-quartile performance: less than 66 minutes without power annually, fewer than one outage per customer, and even faster restoration times. 

These aren’t pie-in-the-sky goals. They’re what many utilities elsewhere already achieve. Michigan regulators passed on this approach, choosing a structure that locks in below-average outcomes and misses the urgent need for grid upgrades on which Detroiters and other Michiganders rely. 

This isn’t just a debate about regulatory policy. Michigan ratepayers have already invested billions in our electric system through higher rates, fees, and storm costs. We deserve to know these investments will build a grid that’s more resilient and reliable, not one where “improvement” still falls short of what’s normal in other states. 

The commission’s order also lacks tough independent oversight and doesn’t fully match up with current outage monitoring, meaning DTE could get incentives the same year it pays out credits for poor service.

Michigan can, and should, demand more. Incentives should only reward utilities when they deliver top-level reliability, and penalties should apply when they fall behind. Otherwise, customers will keep paying more for power that’s less reliable than what others get across the country.

As storms become more frequent and our demand for electricity grows, it’s time for Michigan to raise the bar. Detroiters and ratepayers statewide deserve a regulatory system that puts their needs first, not one that settles for less. 

The commission’s decision missed a critical opportunity to set higher expectations, but it’s not too late to change direction. Achieving true accountability means committing to a higher standard: one that ensures Michigan families and businesses get the same reliable service found in better-performing states.

Planet Detroit’s Voices column includes opinion pieces from our community of partners and readers. These pieces express the voices of the authors and not necessarily those of the publication.

PLANET DETROIT VOICES

Harvey Bell is a member of the Great Lakes Renewable Energy Association, the University of Michigan faculty, and an engineer by trade.