DTE’s Rate Hike Slashed Thanks to Dana Nessel’s No-Nonsense Approach

Michigan AG Nessel’s intervention slashes DTE’s proposed gas rate increase, saving consumers millions and reducing unnecessary utility expenses.

AG Nessel’s Intervention Leads to Major Savings for DTE Customers

Michigan Attorney General Dana Nessel has scored a significant victory for DTE Gas customers after the Michigan Public Service Commission (MPSC) approved a gas rate increase significantly below the utility company’s initial request. On Thursday, the MPSC granted DTE a $113 million rate hike—less than half of the $266 million initially sought by the company in January. This intervention by Nessel’s office has saved customers an estimated $153 million, reducing the proposed rate increase by nearly 56%.

Nessel’s advocacy, which included detailed testimony and arguments against the excessive rate hike, resulted in a smaller 2.3% rise in the typical residential gas bill rather than the almost 10% increase originally anticipated. “The Commission’s decision to slash DTE’s requested rate hike by more than half will save consumers hundreds of millions of dollars on their utility bills,” said Nessel, emphasizing her department’s ongoing commitment to protect Michigan residents from what she deemed “unnecessary and unceasing rate hikes.”

MPSC Adjusts Return on Equity Amid Pushback from Nessel

One of the key aspects of the rate case was the return on equity (ROE), a critical figure that determines the rate at which utility companies can earn returns beyond their costs. DTE requested a 10.25% ROE, but the MPSC approved a 9.8% rate—a decrease that further limits the company’s revenue potential from ratepayers and marks the lowest ROE granted in years. This decision also partially responded to Nessel’s efforts, though her push for a lower rate was not fully adopted.

The MPSC further sided with Nessel’s recommendation to prevent DTE from passing along private jet travel costs to consumers, deeming such expenses unreasonable and not appropriate for customer bills. This move is a clear indicator of the push for greater transparency and fairness in the utility sector.

Broader Implications for Michigan Utility Ratepayers

The DTE rate case represents the latest in Nessel’s efforts to safeguard Michigan residents from soaring utility bills. Since taking office, the Attorney General’s work has led to over $3 billion in savings for consumers, primarily through interventions in utility cases. This outcome serves as a reminder of the complex battles over energy costs in the state and raises awareness of corporate spending practices.

DTE Energy, which provides natural gas to 1.3 million customers and electricity to about 2.2 million customers in Southeast Michigan, will now be working under tighter budget constraints for this approved increase. This decision may also set the stage for future regulatory decisions aimed at balancing corporate interests with consumer protection in a volatile energy market.

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