State approves $242M DTE rate hike. Here's what it means for the average user
State officials have approved an electricity rate hike for DTE that adds up to $242.4 million in new revenue, on the premise that the company continues to upgrade its distribution system and improve reliability.
The typical residential customer using 500 kilowatt hours per month will see an increase of $4.93 or 4.6% in their monthly electric bill when the new rates take effect on March 5, the Michigan Public Service Commission said Thursday.
This rate hike is separate from the transaction fees that DTE is imposing starting March 2 for those who use debit or credit cards to pay online or autopay their bills. DTE said the decision was related to "third-party payment processor fees." Residential customers will be faced with a $2.99 transaction fee for such payments, and commercial accounts will face a $9.99 transaction fee for such payments.
Given the technicalities of the payment fee, it is not considered a rate hike and therefore was not required to go before the Michigan Public Service Commission.
It will be, however, in addition to the rate hike.
Therefore, a residential customer could face both a $2.99 in transaction fee and a $4.93 per month typical fee for a total of $7.92 a month in increased costs.
The monthly rate hike process started in April 2025, during which DTE asked for $574 million in new revenue. State officials eventually approved the lower rate hike amount that will take effect.
The Michigan Public Service Commission said a comprehensive third-party audit, along with its own approval process, indicates that DTE has taken steps to improve safety and reliability. Those efforts include maintenance of utility poles, tree trimming schedules and updating substation infrastructure.
