DTE Energy requesting $426M rate increase - What it would mean for customers
DETROIT (FOX 2) - DTE Energy wants to increase its rates, a move the company says is necessary to rebuild and improve infrastructure.
The company plans to ask the Michigan Public Service Commission (MPSC) for a $426 million increase. This would equate to a daily increase of about 37 cents a day for the average residential customer, DTE said. This amount is the maximum increase the MPSC can approve.
DTE said its goal is to decrease power outages by 30%, and the company believes its changes would cut outage times in half over the next five years.
DTE utility rate hike of $368M approved by Michigan Public Service Commission
Today’s approval of a $368,115,000 rate increase, a typical residential customer who uses 500 kilowatt hours of electricity per month will see an increase of $6.51, or 6.38%, on their monthly bill. The new rates will take effect Dec. 15.
Once the request is received, a 10-month process of approving or denying the rate hike will begin. In December, the MPSC approved a $368 million rate increase for DTE after the company asked for a $622 million increase.
"We’re building a smarter, stronger, more resilient grid that will deliver the energy our customers demand and deserve," said DTE President and COO Matt Paul in a statement. "While the projects we’re undertaking will provide our customers with cleaner and more reliable service, they also require large investments. As we continue to invest in the grid on behalf of our customers, we’re committed to working as efficiently as possible, controlling our operating costs, keeping our residential bills below the national average and providing assistance to our most vulnerable customers."
Some projects DTE highlighted include converting the Belle River coal-fired power plant to natural gas and developing a large energy storage facility at the site of the Trenton Channel Power Plant, which is being demolished.