Michigan Public Service Commission ruling supports DTE investments in a more reliable electric grid and the transition to cleaner energy
01 Dezembro 2023 - 5:53PM
- Offset by a $300 million reduction in fuel and other costs, a
DTE electric residential customer who uses 500 kilowatt hours, will
see a bill increase of 9 cents per day, or $2.56 per month, to
support needed investments
- Keeps average residential bill increase below the rate of
inflation and below the national average
- Supports DTE’s plan to accelerate system upgrades, with the
goal of improving reliability for customers by more than 60 percent
over the next five years
DETROIT, Dec. 1, 2023 — DTE Energy today announced an
order from the Michigan Public Service Commission (MPSC) that
supports DTE’s roadmap to improved reliability, a plan to
accelerate system upgrades with the goal of improving reliability
for customers by more than 60 percent over the next five years. A
DTE electric residential customer who uses 500 kilowatt hours will
see an increase of approximately $0.09 per day, or $2.56 per month,
keeping bill increases below the rate of inflation. That
calculation includes a reduction in fuel costs (known as power
supply cost recovery) of $300 million in 2024, helping to offset
customer bill increases while allowing investments to improve
electric reliability.
“Based on the $300 million reduction in fuel and other costs we
announced in November, our customers can expect to see a minimal
impact on their electric bills as a result of today’s rate order,”
said Trevor Lauer, vice chairman and group president, DTE Energy.
“Our customers demand and deserve improved electric reliability;
the rate order will allow us to continue to invest in the grid as
well as transition to cleaner energy.”
Improving Electric Reliability: Investing in the
four-point plan
Over the past five years, DTE has invested more than $5 billion
in its electric grid and today’s ruling will help support the
company’s plan to invest an additional $9 billion, over the next
five years, to improve reliability. Specifically, today’s MPSC
ruling will support DTE’s four-point plan to reduce the frequency
and duration of power outages, including:
- Updating existing infrastructure: This includes
strategic investments in poles, wires, substations, transformers
and upgrading the oldest circuits on the system to improve
reliability. Planned infrastructure upgrades are detailed on the
electric reliability improvements map on the DTE website.
- Rebuilding significant portions of the grid: Rebuilding
older sections of the grid allows DTE to both increase safety and
significantly increase reliability. During rebuilding, overhead
equipment can be relocated underground where that makes sense. In
addition, rebuilding increases capacity to support ever expanding
electrification.
- Transitioning to a smart grid: With DTE’s Electric
Systems Operations Center and recent launch of a grid management
system, the company has laid the foundation of investing in smart
grid technology. This technology will help DTE to quickly deploy
crews to damaged areas and, in some cases, isolate the outage so
power can be rerouted for customers while repairs are being
made.
- Tree-trimming to improve reliability: DTE trimmed more
than 25,000 miles of trees over the last five years and will trim
5,000 miles more this year. By the end of 2025, the company will
have trimmed every mile of its grid. Equally important, tree
trimming will continue on a five-year cycle to ensure that DTE
continues to keep trees away from its equipment.
Maintaining Affordability: Keeping rate increases below
inflation and below other utilities
Unlike its Midwest and national peers, DTE base-rates – the
portion of customer bills that pay for infrastructure investments
and other reliability work -- have stayed nearly flat since May of
2020, as DTE did not request a base-rate increase during the COVID
pandemic in 2020 and 2021 to assist customers with affordability
during uncertain times. However, to continue to make the
transformational investments needed to reduce both the frequency
and duration of power outages, while building out the electric grid
to handle increasing demands and cleaner energy generation, DTE
requested an increase in electric base-rates earlier this year.
Today’s ruling is part of the utility rate-making process overseen
by the MPSC and is the culmination of a 10-month process led by the
Commission.
Nationwide, electric customers are experiencing rising rates as
utilities grapple with the same challenges facing Michigan –
increasingly volatile weather, inflation, aging infrastructure and
the need to prepare for the future of increased electrification.
Since DTE’s base electric rates were last increased in May 2020,
Great Lakes (Michigan, Indiana, Ohio, Illinois and Wisconsin) and
national average residential bills have increased on average by
5.3% and 6.5% per year, respectively.
With today’s MPSC order, the average DTE electric residential
customer bill would increase about 1.2% per year from May 2020,
well below the Consumer Price Index average annual increase of 5.5%
and below Great Lakes and National averages.
Supporting the most vulnerable
No matter how modest a rate increase is, DTE recognizes the
impact on vulnerable customers, which is why the company works
closely with federal, state and agency partners to get aid to those
in need. In 2021-2022 fiscal year, DTE connected customers to
nearly $200 million in financial aid for their energy bills.
Additionally, partnering with the Michigan Department of Health and
Human Services, DTE directly applies aid to the accounts of many of
its most vulnerable customers – work that has been spotlighted by
the White House.
DTE continues to work with customers having difficulty paying
their bills through several payment assistance programs and has
expanded its income-qualified Energy Efficiency program to assist
customers in making their homes more energy efficient and reducing
their energy bills. The program is delivered through more than 30
nonprofit and community action agencies and has served over 50,000
customers since its inception.
About DTE Energy
DTE Energy (NYSE:DTE) is a Detroit-based diversified energy
Company involved in the development and management of
energy-related businesses and services nationwide. Its operating
units include an electric Company serving 2.3 million customers in
Southeast Michigan and a natural gas Company serving 1.3 million
customers in Michigan. The DTE portfolio includes energy businesses
focused on custom energy solutions, renewable energy generation and
energy marketing and trading. Through our commitment to cleaner
energy, DTE Electric plans to reduce CO2 emissions by 90% and DTE
Gas will plan to reduce methane emissions 80% by 2040 to produce
cleaner energy while keeping it safe, reliable and affordable. DTE
Electric and DTE Gas aspire to achieve net zero carbon emissions by
2050. DTE is committed to serving with its energy through
volunteerism, education and employment initiatives, philanthropy
and economic progress. Information about DTE is available at
dteenergy.com, empoweringmichigan.com, twitter.com/dte_energy and
facebook.com/dteenergy.
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- Comparison of annual residential bill growth (% increase per
year)
Pete Ternes
DTE Energy
3132355555
peter.ternes@dteenergy.com
DTE Energy (NYSE:DTE)
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