DTE Energy asks for $574 million electricity rate hike, months after receiving $217 million increase
DTE Energy is seeking a $574 million, or 9.8%, electricity rate hike from the Michigan Public Service Commission.
The move comes after the Detroit-based utility company was approved for a $217 million increase in January. DTE serves roughly 2.3 million electric customers in Southeast Michigan.
The proposed rate hike, which was filed Thursday with the MPSC, calls for an 11.1% increase for residential customers, 10.8% for secondary, which are mostly commercial or small business customers, and 5.4% for primary, which are mostly industrial customers.
DTE spokesperson Ryan Lowry said the utility saw a nearly 70% improvement in the time customers were without power in 2024 compared to the prior year.
"DTE Energy is making progress on building the electric grid of the future – when we invest, it works," Lowry said. "Thanks to a combination of factors including strategic work and investment in the electric grid last year, our customers experienced a nearly 70% improvement in time spent without power in 2024 compared to 2023. We must continue to invest to deliver the cleaner and more reliable energy our customers demand and deserve. Today's investment request filed with the Michigan Public Service Commission (MPSC) further supports our ongoing work to improve electric reliability and system resiliency in the face of extreme weather and to generate cleaner energy – all while keeping customer bills as low as possible and below the national average."
This filing marks the start of a 10-month process, and DTE customers will not see any adjustments to their bills until the MPSC gives its final order early next year.
In its application, DTE said the rate increase is needed for the company's "continued infrastructure investments to improve the reliability of the grid and to sustain the reliability of its generation fleet while moving toward cleaner sources of generation, including the associated depreciation and property tax increases."
DTE says the filing supports the costs to convert the fuel source of the Belle River Power Plant from coal to natural gas, the construction of its Trenton Channel Energy Center Battery Energy Storage System, as well as decommissioning assets at its River Rouge, St. Clair and Trenton Channel Power Plants.
Michigan Attorney General Dana Nessel said Friday she'll once again intervene in DTE's latest rate increase request.
"Just three months after the MPSC approved a $217 million rate hike, DTE is already back, asking for nearly $600 million more from ratepayers still very dissatisfied with the quality of service they receive," Nessel said. "At some point, we have to ask how long utility companies like DTE and Consumers Energy will be allowed to treat customer bills and our energy rates like a blank check. My office will carefully scrutinize this rate hike request, just like we have with every other one, to ensure DTE isn't padding our bills with bloated or unjustified expenses that do nothing to improve reliability and only serve to fatten the wallets of their executives and shareholders."
If approved, the rate hike would go into effect as early as Feb. 24, 2026.
