Michigan Public Service Commission approves DTE gas rate increase
The Michigan Public Service Commission on Thursday approved a $74.52 million net rate increase for DTE gas customers, which is more than 50% lower than the utility requested.
According to MPSC, a customers who typically use 75 hundred cubic feet of natural gas is expected to see a $2.87 increase. There will also be a 68-cent infrastructure recovery mechanism surcharge beginning on Jan. 1, 2027.
The company initially requested $237.5 million in November 2025, including $74.8 million for "an infrastructure recovery mechanism charge already reflected in rates," resulting in a proposed net rate increase of $162.7 million. The $74.52 million approval is roughly less than half of what the company sought, according to MPSC.
Additionally, the commission instructed DTE to improve communications about existing energy assistance programs for low-income gas customers and to inform the commission of any improvements made in the next rate case. The commission also increased DTE Gas's Low-Income Assistance Credit from $40 to $58.
MPSC also disallowed $17.9 million in fleet costs after concluding that the company retired vehicles earlier than the historical average, without evidence that retiring them sooner was more cost-effective than keeping them in service.
MSPC rejected a $284.1 million request from DTE to replace the Taggart Compressor Station, concluding that the utility failed to present enough evidence to support the project. The commission instructed DTE to show "significantly stronger" support for the project before moving forward.
The commission also raised the power outage credit to $44 per day.
Renee Tomina, president and COO of DTE Gas, issued the following statement following MPSC's approval:
"Today's order from the Michigan Public Service Commission allows us to continue important work to modernize the natural gas system and serve our 1.4 million customers across the state safely and reliably. At the same time, the order does not include the full level of support we requested for the investments we believe are needed to keep pace with critical system upgrades. We are reviewing the order closely and will continue to carefully manage our plans and costs while working to provide the safe, reliable service our customers depend on.
"We recognize that any change in a customer's bill matters, which is why we carefully plan our investments, manage costs and work to keep bills as low as possible. Even as we implement this work, DTE Gas bills are expected to remain below the average for cold-weather states in the Midwest and Northeast."
