DTE Rate Hike Sparks Outrage: Michigan AG Fights $574 Million Increase

Michigan Attorney General Dana Nessel opposes DTE Energy’s $574 million rate hike request, vowing rigorous investigation to protect consumers. The request exacerbates existing concerns over DTE’s customer service quality, highlighting issues about accountability in Michigan’s utility sector.

Michigan Attorney General Dana Nessel pushes back against DTE’s new $574 million electric rate hike request, pledging rigorous scrutiny to protect Michigan consumers.

DTE Rate Hike Request Sparks Outcry Among Michigan Leaders

LANSING — Michigan Attorney General Dana Nessel announced her office will intervene in the latest DTE Energy electric rate case, signaling a growing clash between utility companies and state consumer advocates.

On April 24, DTE Energy filed a new request with the Michigan Public Service Commission (MPSC), seeking an additional $574 million annually. If approved, residential customers would see an 11 percent rate increase. This request comes just three months after DTE received authorization for a $217 million hike earlier this year.

Nessel criticized DTE’s aggressive rate hikes, saying, “Just three months after the MPSC approved a $217 million rate hike, DTE is already back, asking for nearly $600 million more from ratepayers still very dissatisfied with the quality of service they receive.”

DTE Faces Growing Scrutiny Over Customer Service and Reliability Issues

The new rate case intensifies long-standing frustration with DTE among residents of Southeast Michigan. The utility provides electricity to 2.3 million customers and natural gas to 1.3 million customers statewide.

Customer complaints about reliability, frequent outages, and poor service have plagued DTE for years. In a 2023 survey conducted by the Citizens Utility Board of Michigan, DTE ranked poorly on customer satisfaction compared to regional peers (source).

Attorney General Nessel stated her office will thoroughly investigate the company’s proposed expenses, warning that unjustified costs benefiting executives and shareholders will not be tolerated.

Michigan Attorney General’s Track Record in Utility Rate Cases

Dana Nessel has aggressively intervened in previous rate cases, reportedly saving Michigan consumers more than $3.7 billion over the past five years. Earlier this week, her office filed testimony urging a nearly 70 percent reduction to a proposed $248 million hike requested by Consumers Energy.

In DTE’s latest filing, Nessel promised continued vigilance. “My office will carefully scrutinize this rate hike request, just like we have with every other one,” she said.

The pattern of frequent, steep rate increase requests has sparked broader discussions about utility accountability and Michigan’s regulatory framework.

Expert Analysis: Rate Hikes Outpace Service Improvements

Dr. Martin Kushler, senior fellow at the American Council for an Energy-Efficient Economy (ACEEE), told ThumbWind, “In Michigan, utility profits have continued to grow, yet service reliability improvements have lagged. Ratepayers deserve better accountability when facing repeated rate increases” (source).

State data shows that despite billions in investment pledges, DTE and other Michigan utilities have some of the worst outage rates in the Great Lakes region (source).

Broader Context: Michigan’s Energy Challenges

Michigan’s aging energy infrastructure, increasingly frequent severe weather events, and growing energy demands have all placed pressure on the state’s utilities. However, residents and officials alike are questioning whether customer bills should continue rising without clear improvements in system reliability.

Nessel’s intervention signals that the era of unchecked rate hikes could be nearing an end, at least in terms of public scrutiny.

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