Partial DTE gas rate hike approved -- How much it's expected to cost you
DETROIT (FOX 2) - If you get your natural gas from DTE, expect to pay a bit more for it soon after a rate increase was approved by the Michigan Public Service Commission (MPSC).
On Thursday, the commission approved a $113,788,000 rate increase, down about 57% from the increase the utility company was seeking.
DTE filed a request in January to raise rates by $266 million, with $106 million already reflected in rates from a previously approved infrastructure surcharge, for a net increase of $160 million. According to the MPSC, the company said the extra money will be used to fund infrastructure improvement and modernize natural gas transmission and distribution systems.
A gas rate increase was last approved in December 2021, when the company raised prices by $95 million.
How much gas bills will increase
The rate increase will begin Nov. 21.
According to the MPSC, the average household getting their gas from DTE will see their bills increase by about $1.98 a month as a result of the recent approval.
In addition to that increase, customers will start seeing an Infrastructure Recovery Mechanism (IRM) surcharge on their bills that will cost about 66 cents. That surcharge will increase annually until 2029, when the average increase will be a total of $6.28.
What about electricity rates?
The MPSC is still considering DTE Enery's request to raise electricity rates.
Earlier this year, DTE filed a request to increase rates by $456.4 million annually.
Low income assistance increase
Along with approving the rate hike, MPSC approved an increase to DTE's Low-Income Assistance credit for gas customers. That will be $40 a month, up from $30.