Nessel seeks to intervene in DTE's 'absurd' rate hike request

Michigan Attorney General Dana Nessel is pushing back against DTE Energy Co.'s request for an electric rate increase, saying it's “not grounded in reality” as she filed a request with the Michigan Public Service Commission to intervene in the case.

“This latest rate hike request from DTE is, frankly, absurd in both the astounding dollars and obnoxious timing — requesting yet another $450 million not even four months since their last rate hike was approved,” Nessel said in a statement Thursday. “DTE is following their usual playbook, incessant and oppressive rate hike requests not grounded in reality, but rather based on the financial aspirations of their corporate shareholders."

She added: "And DTE demands the money without implementing any corresponding accountability or reliability metrics and measures. DTE’s captive ratepayers in Detroit and elsewhere deserve better than this exploitation, where the utility baselessly demands more and more from their customers without promising anything in return by way of increased reliability or accountability."

DTE has requested from the Michigan Public Service Commission a rate increase of $456 million. If approved, that amounts to about $11 a month for the average DTE customer starting in January 2025.

The Detroit-based utility said in a statement Friday: “DTE Energy will reduce power outages by 30 percent and cut outage time in half over the next five years, all while keeping customer bills below the national average. We are committed to giving our customers the reliable and affordable energy they deserve.”

Nessel noted that the Michigan Public Service Commission approved a $368 million electric rate increase for DTE Energy customers in December. The hike approved was about 60% of what the utility initially requested in February 2023.

“With this latest filing, DTE is seeking to effectively raise its annual rates by more than $800 million in a period of 13 months,” Nessel’s office wrote in a statement.

Nessel previously intervened in a case in which the Michigan Public Service Commission earlier this month approved a $92 million rate increase for Consumers Energy Co. electric customers. The approved rate increase was 57.4% lower than Consumers Energy’s first request in May 2023. The utility initially sought a rate increase of $216 million, which it later reduced to $170.8 million. Nessel argued that Consumers Energy’s request was excessive and the utility had only faced a $56.95 million revenue shortfall.

cwilliams@detroitnews.com