Nessel calls for reduction of proposed DTE electric rate increase

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Michigan Attorney General Dana Nessel is pushing back against DTE Energy’s proposed $456.4 million revenue increase, filing testimony with the Michigan Public Service Commission (MPSC) that argues the requested increase is “excessive and unnecessary.”

A statement released by the Michigan Department of Attorney General said the company’s requested rate increase would result in a 10% hike for residential customers, with Nessel arguing DTE should instead receive a $139.5 million annual increase, representing a 2.5% increase for residential customer rates.

DTE is one of the state’s largest energy providers, selling electricity to approximately 2.3 million customers in Southeast Michigan and natural gas to 1.3 million customers across the state.

Nessel also requested the company reprioritize customer dollars toward vegetation management and tree trimming, saying these options are proven to be more effective at reducing outages than more expensive, capital-intensive options proposed by DTE.

The company has been repeatedly criticized for poor reliability and lengthy outages.

DTE spokesperson Jill Wilmot said tree-trimming remains an important part of the company’s four-point plan for reducing power outages by 30% and cutting outage time in half over the next five years.

Wilmot said the requested rate case dollars would be used to accelerate the deployment of technology and the company’s transition to a smart grid, upgrade existing infrastructure with equipment like stronger poles and fiberglass crossarms to better withstand extreme weather, rebuild significant portions of the grid and continue to trim trees around equipment and power lines.

The increased revenue would also be used to convert the Belle River coal-fired power plant to natural gas, enabling the retirement of two of the units of the coal-fired Monroe Power Plant in 2028 and to accelerate the development of energy storage by building the newly approved Trenton Energy Center, Wilmot said.

Nessel also raised concerns about some of the costs listed for recovery in the company’s rate request.

“A deep dive into DTE’s latest electric rate case reveals a disturbing pattern of exaggerated projections and unsubstantiated projects that clearly prioritize corporate interests over customer benefits,” Nessel said in a statement.

“DTE is once again seeking MPSC approval to bill its customers for corporate jet travel by executives on top of these inflated costs. Such exorbitant expenditures not only inflate customers’ bills but also undermine DTE’s corporate pledges to reduce greenhouse gas emissions.  These unnecessary costs directly contribute to rising utility bills,” Nessel said, referencing private jet travel expenses included in the company’s projected expenses as part of its justification for a proposed revenue increase. The costs were also included as part of the company’s ongoing gas rate case.

Wilmot acknowledged the inclusion of the travel expenses in the rate case, saying “a fraction of the costs for limited air travel for business-appropriate needs – including industry association meetings, which provide best practices and information sharing to run best-in-class energy companies, as well as meetings necessary to attract investment dollars into Michigan – were included in the initial DTE rate request.”

On Wednesday, community advocates and organizers with We the People Michigan hosted a gathering outside DTE headquarters in Detroit, calling for the MPSC to host a hearing in Detroit, rather than its office in Lansing, and to reject DTE’s requested rate hike.

Pontiac City Councilperson Mikal Goodman emphasized the impact that DTE’s lengthy outages are having on his residents.

“In a state where we have communities with public power, with solid energy infrastructure, it is deeply unconscionable that we have an energy company that has a monopoly in our state that is doing really nothing to improve their system and improve their services for the people of Michigan. Especially my residents who are heavily Black and Brown and working class, who are in need.” Goodman said.

“When we lose power for two weeks it’s not just a matter of losing power, but we’re losing weeks, if not an entire month worth of food that cannot be replaced with the money that they have,” Goodman said, pointing to other residents who are heavily impacted due to their use of medical devices that must maintain power.

If DTE cannot reliably supply that power, consumers need to ask whether the company deserves to receive more money and charge more without providing actionable services, Goodman said.

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