DTE Energy Electric Rate Hike Approved: What It Means For Your Bill

MICHIGAN — DTE Energy customers will pay more for electricity starting next month after officials approved the utility's latest hike request Thursday.

The Michigan Public Service Commission unanimously granted DTE an annual revenue increase of $217.4 million, its second electric rate hike in a little more than a year. The utility originally sought a $456.4 million increase, or 52 percent more than what was approved by the commission.

DTE customers using 500 kWh will see a monthly increase of $4.61, or 4.65 percent in their monthly bill starting Feb. 6, according to the commission.

DTE said the hike is needed to expand tree trimming operations and improve and replace aging power lines, with an emphasis on Detroit and its surrounding suburbs, including Royal Oak and Birmingham, as well as Ann Arbor and large parts of the Thumb.

Other parts of the request the commission approved include:

• Costs for DTE Electric’s breaker replacement program, which help recognize and isolate grid interruptions, allowing power to flow to as many customers as possible while minimizing equipment damage and reducing substation outage risks.
• Increasing DTE Electric’s low-income utility bill assistance credit from $40 to $50 a month, for enrolled customers whose household income is at or below 150% of the federal poverty level.
• Electric vehicle investments to support charging infrastructure as more drivers opt for EVs, including $12.5 million in capital expenses for DTE Electric’s Charging Forward program in 2024 and $5.1 million in 2025.
• Costs for the utility’s portable generator program, which provides generators to the most vulnerable customers during widespread outages, helping power refrigerators and freezers, preventing the loss of food and medicine, powering critical-care medical devices, and more.

DTE argues the hike will be mitigated because of its "recent customer monthly bill reduction in the power supply cost recovery factor (PSCR)."

"Our customers demand and deserve reliable energy," a DTE spokesperson told Patch Friday. "DTE Energy is continuously improving our operations and driving down costs to keep energy affordable. Combined with DTE’s recent customer monthly bill reduction in the power supply cost recovery factor (PSCR), today’s order from the Michigan Public Service Commission means residential electric customers will not experience an increase in their monthly bills."

DTE Electric’s last electric rate increase was in December 2023, when the commission approved a $368 million increase, costing the average residential customer about $6.51 more per month, according to the commission.