The Michigan Public Service Commission approved a settlement raising the annual depreciation expenses of DTE Electric Co. by about $90 million – lower than the utility’s $156 million request – for coal, wind, and solar power generation plants.
- The agreement does not apply to the utility’s coal plants that are scheduled to retire in the 2020s. Depreciation allows utilities to recover the original cost of their current assets through base rates.
- The agency lowered the rate by about $1.8 million for Upper Peninsula Power Co. whose depreciation changes reflect the utility’s decision to extend the operation of its McClure, Prickett, and Victoria hydropower facilities by 30 years beyond their current federal licensing terms.
- The rates will be used to determine revenue requirements in pending rate cases. DTE Electric is a subsidiary of DTE Energy Company.