Partial DTE Rate Hike Approved, Here's How Much More You'll Pay Each Month

MICHIGAN — DTE Energy customers will pay a more for natural gas after officials approved a partial rate hike Thursday.

The Michigan Public Service Commission approved a $113,788,000 rate hike Thursday, meaning DTE customers will see an average increase of 2.28 percent or roughly $1.98 in their monthly bills

The utility originally sought in January to raise rates by $266 million, which would be used to support infrastructure investments, provide funding to update its natural gas transmission and distribution system and maintenance costs.

That requested amount included $106 million that was already approved by the commission, meaning it would have been a $160 million increase for DTE customers.

Instead, the commission granted a $113,788,000 rate increase, which is 57 percent down from what DTE originally asked for, according to the commission.

"The Commission approved a lower authorized rate of return on common equity of 9.8 percent, down from the prior approved 9.9 percent, and a capital structure of 50 percent equity and 50 percent debt," Michigan officials said.

DTE customers will also see 66 cents added to their monthly bills each month due to the Infrastructure Recovery Mechanism (IRM) surcharge, according to the commission.

That surcharge will increase annually, and customers will eventually see an increase of $6.28 by Jan. 1, 2029, according to the commission.