Demonstrators rally in Detroit against proposed DTE Energy rate hike

Detroit — Dozens of people gathered downtown Monday to decry a proposed rate hike by DTE Energy, ahead of a Michigan Public Service Commission hearing to discuss the utility's request to increase customers' utility bills by an average of $10 a month.

Carrying signs with messages that included "Stop the Rate hike" and "DTE Can't Silence Me," a group of about 100 people assembled outside the Wayne County Community District's Downtown Campus on Fort Street.

After the rally outside the college, some members of the group went into the auditorium to ask the MPSC to vote against giving DTE permission to raise rates.

In January, DTE, which last month reported second-quarter earnings of $37 million, applied for $388 million in additional funding "in order to recover, among other things ... increased investments in plant involving generation and the electric distribution system and the associated depreciation and property tax increases," the utility said in its Jan. 21 request. 

The proposed hike, which DTE said it wanted to implement by November, would cost the average residential customer up to $10 extra per month.

"The proposed revenue increase described in this application is necessary in order

to allow the company to continue to provide safe and reliable electric service, to meet customers’ service quality expectations, and to allow the company a reasonable opportunity to recover its costs of operation, including a reasonable rate of return," the company said in its application. 

Ken Whittaker, director of the Michigan People's Campaign, said during Monday's protest that DTE is "greedy" for requesting the increase.

"What you have is a corporation funding legislators off the backs of people who can't afford it," he said.

DTE said in an email Monday: "When new rates are approved by the commission it will be nearly three years since the last base rate increase. The affordability of our service is a priority for us. Currently, DTE Customers’ bills are below the national average and that remains our goal.  

"DTE Energy is transforming to deliver customers a reliable, modern and clean grid of the future that makes the most sense for Michigan. This transformation requires commitment and investment, and DTE has plans to invest heavily in a grid of the future that supports our fast-evolving lifestyles, businesses, and economy."

The company added: "By next year, 40% of DTE’s energy will be generated from non-carbon emitting sources. DTE is all-in when it comes to solar development. In fact, we are pursuing community solar projects in Detroit, Highland Park and River Rouge. That’s why we need to invest in the electric grid to bring on new forms of renewable energy."

The January rate hike request is the utility's first since 2019. In 2020, the MPSC approved DTE's plan to keep rates the same until 2022 in order to give customers relief during the COVID-19 pandemic.

Although DTE last requested a rate hike in 2019, customers in January saw a gas rate increase of $84.1 million, which cost the average ratepayer an extra $3.18 a month. The utility said most of that additional revenue would go toward modernizing its gas delivery network.

Several protesters wore green T-shirts from the Michigan People's Campaign, part of the Defend Black Voters Coalition, which promoted Monday's rally. Protest organizers said the gathering aimed to call attention to the utility's proposed rate increase.

A recurring theme during Monday's protest was what they called an increase in power outages, which happen "every time the wind blows," Whittaker said.

Protester Erik Shelley called on the MPSC to "do its job, which is to protect consumers. Their concern should be the public, not DTE energy." 

Before leading a group into the MPSC meeting, Corzetta Renee led the demonstrators in a rendition of "Whose Side Are You On?" by Tommee Profitt and Ruelle, with lyrics altered to frame the question to MPSC members.

Pastor Kevin Harris of Detroit's Nazarene Baptist Church said: "We need to remind the Public Service Commission of their mission statement, which says, 'To serve the public by ensuring safe, reliable services at reasonable rates.' We don't believe this rate increase is reasonable."

ghunter@detroitnews.com

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Twitter: @GeorgeHunter_DN