Michigan Commission Approves About $217 Million Rate Increase for DTE Electric

The Michigan Public Service Commission on Jan.23 approved a rate increase of approximately $217.4 million for DTE Electric, about 52 percent lower than the utility’s initial request. The commission approved investments in several initiatives including upgrading aging power lines, more frequent tree-trimming to enhance grid reliability, and electric vehicle charging infrastructure.

With DTE Electric set to implement the rate increase on Feb. 6, a resident consuming 500 kWh per month will see an increase in their monthly bill of 4.65 percent or $4.61. The commission did not approve the company’s request to increase its return on common equity to 10.5 percent from the current rate of 9.9 percent.

A key investment in reliability involves ongoing upgrades to Detroit’s 4.8-kilovolt utility system. The system hardening program will aim to reduce downed wires that could pose a safety risk to the public and use more durable materials for insulators and poles.

In addition to system hardening, the commission also authorized spending on other reliability systems such as system breakers which help to identify and contain grid interruptions, and pole maintenance programs. DTE Electric will also expand substations and decommission aging infrastructure such as underground cables that could hinder safety and reliability.

The commission approved $87 million in spending for DTE’s vegetation management program to increase tree trimming. Broken branches and fallen trees were responsible for over 60 percent of the company’s power outages.

Further, DTE Electric is authorized to extend its Infrastructure Recovery Mechanism to December 2026. Spending for the program will be limited to approved rates for 2025.

The utility will continue to invest in low-income communities, by increasing the monthly low-income utility bill assistance credit by $10. The program serves residents whose household income is at or under 150 percent of the federal poverty level.

With the demand for electric vehicles rising in Michigan, DTE will expand charging infrastructure with its Charging Forward program. The company invested $12.5 million and has allocated $5.1 million for 2025.

The commission last approved DTE Electric’s rate increase in December 2023, reducing the company’s original request by 40 percent to $368 million. Prior to the 2023 increase, the company implemented a $30.5 million rate increase in 2022.