DTE's 10% rate hike request for electricity customers sparks protests, AG intervention

DETROIT (FOX 2) - A rally protesting proposed rate increases by DTE on Wednesday included disgruntled customers of the utility upset with the company after it filed a request seeking an annual increase of $456.4 million. 

The request for a 10% rate hike was protested by residents and even a Pontiac city councilperson outside its headquarters in Detroit.

DTE made the request to the Michigan Public Service Commission only months after receiving a $368 million increase from a previous rate case last year. The new proposal was filed in March.

"I felt very frustrated as well as very disappointed. I am a customer of DTE for many years," said Tomena Rawls, who lives in Redford Township. "I pay my bill. Zero balance. And still, I'm getting sub-par, non-efficient working power when it comes to my home."

DTE released a statement in response to the public complaints, saying a rate hike was needed to help improve the grid's reliability. DTE said their goal is to reduce power outages by 30% and cut outage time in half by 2029.

"This requires investments that will help us build a smarter, stronger and more resilient grid that will serve our customers for generations to come."

In addition to protests, Michigan Attorney General Dana Nessel intervened in the case earlier this week. Testimony was filed by Nessel on July 27.

In it, she argued that the energy company should receive no more than a $139.5 million annual increase - or less than 3%. 

Protesters outside DTE headquarters in Detroit. 

Her recommendation would limit the increase to around 2.5%. She also argued DTE should place customer dollars towards vegetation management and tree trimming, activities that have proven to be effective at reducing outages and less costly. 

The rate increase must be approved by MPSC before it can go into effect.