Detroit

Michigan Gas Bills to Rise After MPSC OKs DTE Rate Hike, AG Nessel Ensures Cut in Proposed Increase

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Published on November 11, 2024
Michigan Gas Bills to Rise After MPSC OKs DTE Rate Hike, AG Nessel Ensures Cut in Proposed IncreaseSource: JK Nair, CC BY-SA 4.0, via Wikimedia Commons

Michigan residents who are customers of DTE Gas Company can expect to see an increase in their gas bills after the Michigan Public Service Commission (MPSC) recently approved a rate hike. The approval translates to a 2.28% increase in natural gas rates, which equates to approximately $1.98 more each month for the typical residential customer using 100 cubic feet of natural gas, according to the Detroit Free Press. This rate change is set to come into effect on Nov. 21.

Along with the rate increase, the MPSC also greenlit an "Infrastructure Recovery Mechanism" surcharge that will begin at 66 cents monthly and is scheduled to climb each year, reaching $6.28 by 2029. Though DTE initially sought a $266 million rate increase, the approved increment is substantially lower at $113.8 million, as reported by WZZM13. According to the same publication, slashing the requested rate hike by nearly 60% represents a saving for consumers of hundreds of millions of dollars.

Attorney General Dana Nessel actively opposed the scale of the proposed increase, intervening to advocate for a significantly lower rate. "The Commission's decision to slash DTE's requested rate hike by more than half will save consumers hundreds of millions of dollars on their utility bills," Nessel said, as per SooLeader. This is not the first instance of reduction in proposed utility rate increases through intervention; Nessel's office has been involved in several cases that have cumulatively saved Michigan consumers over $3 billion.