DTE Electric to Implement $30.5 Million Rate Hike for Michigan Customers

The Michigan Public Service Commission on Nov. 18 authorized DTE Electric Company to increase its rates by $30.557 million effective Nov.25. Earlier in January 2022, the company filed an application pursuing a $388 million rate increase to recoup increased investments in its production and distribution system to enhance reliable service to its 2.3 million consumers in southeast Michigan.

The commission approved a lower amount, which will result in an increase of 0.78 percent, or 71 cents, in the monthly bill of a typical residential customer. The decision authorizes a jurisdictional rate base of about $20.4 billion, a rate of return on common equity of 9.9 percent and a general rate of return of 5.42 percent.

Various pilot projects received approval for full or partial recovery in rates. Additionally, the commission also rejected a number of pilot projects suggested by DTE Electric in the case and urged DTE Electric to submit its pilot project plans outside of the general rate case process. The commission emphasised that considering pilots outside of the rate case process would permit more occasions for stakeholder participation outside of a disputed case and result in the utility advising pilots for authorization whose specifics have been thoroughly thought out.

The commission focussed DTE Electric to work with various stakeholders to conduct a number of technical conferences during Q1 2023 to investigate the benefits and costs of consolidating the company’s 4.8 kV distribution system.

The commission instructed the company to show proof in its next rate case related to inflation modifications required for emergent replacements; investments necessary to execute repairs and replacements of overhead and underground electricity equipment broken during extreme weather. In addition, the commission instructs the company to reassess the consumer networks, relocations and other systems, and the planned capital financing programs currently utilised and reallocate, where required, spending that aligns with the objective of emergent replacements.