DTE Energy has requested another energy rate increase, three months after its most recent increase was approved (though at a lower rate than the utility had requested).
The new requested increase would total $574.1 million. A pre-hearing on the proposal is scheduled for May 22.
DTE Energy applied for an increase in electric rates on April 24 because it says it’s taken on a “major capital investment program” to improve its reliability. The company’s current authorized rates do not create “adequate revenues to make necessary infrastructure and generation investments,” according to Marco Bruzzano, a senior vice president at DTE Electric who testified on behalf of the company to the Michigan Public Service Commission.
If the proposal is approved, DTE Energy bills are expected to increase an average of 44 cents per day for residential customers starting in February 2026.
DTE spokesperson Ryan Lowry sent a statement to Michigan Public about the request, saying the filing marks the start of a 10-month process and that customers’ bills will not be impacted until the approval process is completed.
“Today’s investment request filed with the Michigan Public Service Commission (MPSC) further supports our ongoing work to improve electric reliability and system resiliency in the face of extreme weather and to generate cleaner energy – all while keeping customer bills as low as possible and below the national average,” the statement read.
While DTE Energy plans to improve reliability and infrastructure with the increase in funds, it also says it plans to use the funds for other projects, including:
- Improving the electric distribution grid and meeting its goal of reducing outage frequency by 30% and outage duration by 50% before the end of 2029,
- Converting the Bell River Power Plant from coal to natural gas,
- Continuing to converting a portion of a retired coal power plant, Trenton Channel, to house a 220-megawatt battery energy storage center,
- Helping with plant removal at the decommissioned River Rouge, St. Clair, and Trenton Channel power plants,
- Extending and expanding the Infrastructure Recovery Mechanism
- Ensuring the continued safe and reliable operation of the Fermi 2 Nuclear Power Plant in Monroe County, and
- Improving information technology infrastructure.
In January, the Michigan Public Service Commission approved a previous rate increase worth $217 million for DTE Energy. That number was about half what the electric company initially requested.
The new April 24 request was met with criticism from Michigan Attorney General Dana Nessel. She said in a press release that she plans to intervene in the latest rate increase proposed.
“At some point, we have to ask how long utility companies like DTE and Consumers Energy will be allowed to treat customer bills and our energy rates like a blank check,” Nessel wrote.
(DTE and Consumers Energy are both among Michigan Public's corporate sponsors.)
The Michigan attorney general’s office also said that DTE Energy sells electricity to about 2.3 million customers in Southeast Michigan and natural gas to 1.3 million customers statewide. On the case docket, 80 public comments have already been filed, as of May 1, and many of them urge the commission to reject the latest proposed increase.
DTE Energy’s request comes days after Consumers Energy requested a $248 million annual rate increase on top of current rates for natural gas customers. The company increased its rate by 2.8% starting April 4 after the commission approved a $153.8 million increase in revenue in March. Nessel has also spoken out against Consumers Energy’s proposal.
“As we’ve seen time and again, Consumers Energy and DTE continue to prioritize padded profits over serving the needs of their customers in every rate hike request,” Nessel wrote in a statement on the Consumers Energy proposal.
The pre-hearing
The Michigan Public Service Commission will be holding a virtual pre-hearing on May 22 at 10 a.m. about the requested increase in energy rates. The pre-hearing will be held before Administrative Law Judge Sally Wallace.
Chris Bzdok, a lawyer at Troposphere Legal, is representing the Michigan Environmental Council and the Citizens Utility Board of Michigan at the pre-hearing. He said the process of approving an increase in energy rates is similar to a legal process.
“When a utility seeks increased rates, they start a case. It's an administrative case, but it has a lot of aspects like a regular legal case, and organizations that represent customers have a right to intervene in those cases, and so that's what we typically do, and that's we're going to do here,” Bzdok told Michigan Public.
Bzdok explained that the pre-hearing is procedural. It allows the commission to set up a schedule for the case, determine who is intervening, and hold time for public comment. He said he’s hoping to reduce the size of the rate.
“First and foremost, we are going to try and bring down the size of this excessive rate increase request and, where there are opportunities to advocate for better operation going forward, we will do that as well,” Bzdok said.
Those who wish to intervene in the request can file a petition to intervene with the commission by May 16. Once a petition is filed, the Michigan Public Service Commission reaches out to those who wish to intervene in the process to participate in the hearing.
People who do not want to intervene but wish to appear at the hearing to make a statement can file to make an appearance, and those who want to file a public comment can file a written statement in the case docket.
After the pre-hearing, more testimony and cross-examination will take place before moving forward to a briefing.
