Michigan Attorney General Dana Nessel plans to intervene in DTE Energy's $456 million rate hike request, criticizing it as "absurd" and questioning the need for such a substantial increase. DTE argues the hike is necessary for grid improvements and service reliability, but Nessel's office contends that the company has failed to justify previous cost increases. The Michigan Public Service Commission will consider the request, with a history of approving lower rate increases than initially sought by utilities.
Michigan Attorney General Dana Nessel intervened in DTE Electric Company's request for a $450 million rate increase, criticizing the timing and lack of accountability. Just four months ago, DTE was approved for a $368 million rate hike, costing the average residential customer $100 or more annually. Nessel aims to prevent residents from bearing additional costs without quantifiable benefits and has also raised concerns about DTE's five-year distribution plan lacking utility accountability.
The Michigan Public Service Commission has approved a $368 million electric rate increase for DTE Energy customers, which is about 60% of what the utility initially requested. The increase will cost the average residential customer about $6.51 more per month on their electricity bill. DTE argued that the impact to customers' bills will be offset by other recent cost savings realized by the company. The rate hike is aimed at improving grid reliability and reducing outages in the state. The approved rates will be effective from December 15 for DTE's 2.3 million electricity customers in southeast Michigan and the Thumb area.
Consumers Energy, a Michigan-based electric utility company, has unveiled a five-year plan to enhance the reliability of its electric grid and reduce power outage durations and frequency. The plan includes trimming trees near power lines, replacing outdated electric poles, burying more power lines underground, and automating parts of the grid. The company aims to seek approval from the Michigan Public Service Commission for the plan, which could involve an investment of approximately $9 billion and the burial of an estimated 5,000 miles of low-voltage power lines. Consumers Energy intends to ensure that no customer goes without power for more than 24 hours and that no outage affects more than 100,000 customers.
Consumers Energy has been granted approval to raise its rates by $95 million, starting from October 1st. The increase will fund infrastructure improvements, technology investments, operational efficiency, and higher financing costs. The company plans to allocate the funds towards its Enhanced Infrastructure Replacement Program, reducing methane emissions, and making the natural gas system safer, more reliable, affordable, and cleaner. This rate increase follows a previous approval of a $170 million increase in July last year.
The Michigan Public Service Commission (MPSC) is investigating Consumers Energy over complaints of malfunctioning gas meters, possible overbilling, and delays in installation services. Customers have reported malfunctioning meters and abnormally high bills due to estimates made by Consumers Energy. MPSC found that the company was estimating bills for customers with malfunctioning 3G meters, despite being aware of the issue since 2020. The commission is concerned about these discrepancies and will analyze data from Consumers Energy to make recommendations by September 29th.
The Michigan Public Service Commission (MPSC) is investigating Consumers Energy following complaints from customers about malfunctioning natural gas meters, potential overbilling due to estimated meter readings, and delays in new service installations. The MPSC received numerous complaints about malfunctioning meters that were not displaying electricity usage, as well as abnormally high bills due to estimated readings. The commission also noted that Consumers Energy failed to meet Service Quality and Reliability Standards requirements for new service installations. MPSC staff found that the company had been aware of meter malfunctions since 2020 but did not disclose the issue during a waiver request. The MPSC has ordered Consumers Energy to provide explanations and data related to these issues.
Starting June 1, DTE and Consumers Energy will have a summer rate increase depending on the time of day, with higher rates in effect between 3 p.m. and 7 p.m. for DTE customers and 2 p.m. to 7 p.m. for Consumers Energy customers, Monday through Friday, June through September. This comes as DTE was asking the Michigan Public Service Commission to allow an overall rate increase of $619 million. Environmental justice and civil rights groups are urging customers to lobby their state representatives for better performance and lower rates.
Lawmakers in Michigan grilled executives from DTE Energy and Consumers Energy over their response to power outages caused by winter storms in recent weeks. The storms left hundreds of thousands without power, with some going days without electricity during frigid conditions. While lawmakers sought to hold the companies accountable, utilities mounted a vigorous defense of their actions. However, residents affected by the outages criticized the companies' words and required reimbursements for long-term outages, saying they didn't outweigh their experiences.
