Michigan Commission Approves $110 Million Rate Hike for DTE Gas

The Michigan Public Service Commission on August 20 authorized a settlement allowing DTE Gas to increase its revenues by $110 million, which is about 46 percent lower than the utility’s original request. The new rate, effective Oct. 1, will raise monthly residential bills for customers using 100 cubic feet of gas by about $2.97 or 3.9 percent.

In its initial request filed in November 2019, the DTE Energy Company subsidiary sought an increase in annual revenues of $203.8 million, which it later reduced to $188.5 million. The company said the additional revenue is required to meet natural gas system integrity expenses and also offset the increase in conservation measures and decrease in consumption.

The settlement includes a one-time donation of $1 million – borne by DTE shareholders and not ratepayers – to The Heat and Warmth Fund, which assists struggling households pay utility bills.

The company agreed to launch a demand response pilot program in winter 2021-2022 consistent with the 2019 Statewide Energy Assessment to boost resilience when energy supplies or delivery are constrained. DTE will also include a 10-year gas delivery plan in its next rate case, providing a framework for  infrastructure investment.

The entities privy to the agreement are the Association of Businesses Advocating Tariff Equity; Detroit Thermal LLC; Michigan Department of the Attorney General; Citizens Utility Board of Michigan; Michigan Power Limited Partnership; Retail Energy Supply Association, and Verso Corporation. All but one of these companies, Residential Customer Group, signed onto the settlement, with the latter filing a statement of non-objection.