Michigan's pursuit of energy affordability has been marked by a notable win for consumers, as state Attorney General Dana Nessel effectively slashes a proposed DTE Electric rate increase by over half. The original proposal sought an additional $456.4 million, but intervention from Nessel's office brought the final approval down to a $217,380,000 hike in revenue for DTE from next month onward. This rate increase represents a substantial cut from the utility's ambitious initial plan, and yet it follows a precedent of upward adjustments, as it comes just after a substantial $368 million rate hike approved only 14 months prior.
During the case filed in March 2024, Nessel contended an increase should be capped at roughly 2.5%, or $139.5 million. The final figure, however, hovers around a 5% increase for residential customers. The Michigan Public Service Commission, in agreement with Nessel, excised certain questionable expenses from DTE's request, including private corporate jet travel and $39 million in shareholder incentives. According to the Michigan Department of Attorney General, "This case was filed immediately after DTE received approval from the Commission for a staggering $368 million annual rate increase. Combined with this latest rate hike, DTE has obtained approval to rake in nearly $600 million in additional annual revenue from ratepayers in just 14 months."
Nessel, addressing the financial impact these rate hikes have on consumers, remarked, as per the Michigan Department of Attorney General, "While I applaud my team’s tireless efforts in saving DTE customers over $500 million during this time, I remain deeply concerned about the relentless pace and magnitude of these enormous rate increases. More work must be done to limit DTE’s unsustainable rate growth at the expense of ratepayers while improving customer reliability. My office will continue to stand up for Michigan consumers and fight these incessant rate hikes."
The consumer savings extracted from these negotiations by Nessel's office since she took office eclipse $3.4 billion, demonstrating a consistent pattern of advocacy on behalf of Michigan ratepayers. Included in these savings was last year's reduction of over $150 million in proposed hikes for DTE gas customers. Moreover, Nessel's office is reviewing additional rate increase petitions, such as Consumers Energy's proposal for a $248 million annual gas rate hike, noteworthy as it follows another recent approval for a $35 million increase in their gas rates.
