Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utility Rates And Regulation topic
No spam. Unsubscribe anytime.
Michigan PSC approves UMRC rate settlement and DTE accounting authority; public commenters urge tighter oversight
Summary
The commission unanimously approved a settlement allowing Upper Michigan Energy Resources Corporation to raise annual retail electric revenues by roughly $6.6 million starting Jan. 1, 2025, and granted DTE a one-time accounting authority to accelerate vegetation management work. Remote public commenters urged the commission to hold utilities accountable on metering and affordability concerns.
The Michigan Public Service Commission on Oct. 10 unanimously approved a series of orders including a settlement in Upper Michigan Energy Resources Corporation's rate case (U-21541) that authorizes about $6.6 million in additional annual retail electric revenues effective Jan. 1, 2025, and a separate order granting DTE Electric Company one-time accounting authority to continue tree trimming and vegetation management work (U-21799).
Elena Brown Schweag, the staff member presenting the UMRC case, summarized the company's May 1, 2024 application and a Sept. 24 settlement that resolved the proceeding. "The settlement before you adopts a January 1, 2025 through December 31, 2025 test year, a rate base of approximately $6.6 million to non-Tilden customers, an authorized rate of return on common equity of 9.86% and a common equity ratio of 50%," she said.
Under the settlement, UMRC will implement a gradual rate realignment (RRA) to unify two service territories beginning Jan. 1, 2025; implement a residential income allowance and senior bill assistance program; conduct a system-wide line-loss study to inform future requests; and file a distribution investment and maintenance plan in case U-20147 by Jan. 30, 2026. Chair Dan Scripps said the settlement represented a reasonable resolution that supports needed infrastructure investment while approving an increase about 40% less than the company originally requested.
Separately, the commission approved DTE Electric Company's request for one-time accounting authority to pull forward tree trimming and vegetation management activity that otherwise would have been rolled into 2025. Commissioners said continuing the work supports reliability and approved the order unanimously.
During the public comment period, two remote commenters pressed the commission on utility accountability and affordability. Ibraad Seed of Novi asked the commission to investigate a dispute with DTE over installation of a secondary meter for an electric vehicle, saying field staff deviated from DTE's published SIM manual and had forced him into a more expensive configuration. "DTE field reps should not be allowed to make policy up on the field which contradicts their own SIM manual," Seed said, asking for a commission investigation and noting his attempts to file a formal complaint had not been resolved.
Charity, a Detroit resident representing We the People Michigan, described repeated reliability problems and urged the commission to reject rate hikes that she said Detroiters cannot afford. "This is an affordability issue, a health issue, and an equality issue," she said, recounting neighborhood reports of multi-day outages and minimal compensation for spoiled food and impacts to residents with medical equipment.
The commission closed public comment, noted the next regular meeting is Nov. 7, 2024 in Lansing, and adjourned. All orders considered during the Oct. 10 meeting were approved by unanimous votes of the commissioners present (Chair Dan Scripps and Commissioner Peritic); Commissioner Kerion was recorded as excused.
