Detroit's DTE Energy has sparked concern among residents after announcing their intent to request an additional $456 million from the Michigan Public Service Commission. This request, if sanctioned, would inflate the average DTE customer's monthly electric bill by more than $11, starting from January 2025. Detroit Free Press reports that this hike is aimed at funding a transition to a more robust and smarter electric grid.
Last December, the Michigan Public Service Commission sanctioned a DTE electricity rate increase of more than $368 million, a scaled-down figure from DTE's original ask of $620 million. This fresh rate-hike plea comes as the energy company grapples with the aging infrastructure and worsening weather. According to statements obtained by the Detroit News, DTE Energy's President and COO, Matt Paul, emphasized the necessity to build the grid of future and enhance state reliability.
The rate increase plans to finance the installation of approximately 10,000 smart devices on electrical circuits. Each device can fetch a price of up to $100,000, including setup costs, and is designed to swiftly and accurately identify the locations of power outages. "This case is incredibly important for us to continue to do the work we need to do to build a grid of the future, and continue to improve reliability in the state," Paul told the Detroit Free Press.
The reaction amongst Detroiters has been mixed, with some acknowledging the potential benefits of fewer power outages while others bemoan the continuous uptick in living costs. “It’s not fair … all the prices are going up, we don’t need another thing to worry about,” a resident voiced out in an interview with WXYZ. The utility company assures that while the investment demands significant funding, it remains committed to operating efficiently and keeping residential bills below the national average.
The proposed investments also encompass DTE's greener initiatives, including converting coal-fired plants to natural gas and investing in energy storage solutions, as noted in the Detroit Free Press. These moves come as part of a broader effort to meet the company's goal of phasing out coal by 2032. A 10-month feedback process is expected to follow the rate increase filing as both the MPSC and other stakeholders weigh in on the proposal.
