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Michigan PSC approves DTE Electric order authorizing reliability investments and additional revenue
Summary
The Michigan Public Service Commission unanimously approved an order in case U-21534 that authorizes DTE Electric to implement new rates and roughly $217 million in additional revenue to fund reliability projects, increase a low-income assistance credit and direct reporting and equity requirements.
Chair Dan Scripps opened the meeting and the commission approved, by unanimous voice vote, the order in case U-21534 concerning DTE Electric’s rate request.
The staff presentation, led by Jill Rusnik, summarized the company’s application and the lengthy record. Rusnik said, "DTE Electric requested authority to increase its retail rates by approximately $456.00 million." The order the commission adopted approves targeted investments aimed at improving safety and reliability, including continued funding for a tree-trimming surge program, upgrades to DTE’s legacy 4.8 kilovolt system and breaker replacements to reduce substation outage risks. It also authorized DTE to implement rates on or after Feb. 6, 2025.
Why it matters: The order directs spending on programs the commission found would enhance reliability and sets conditions to protect customers. The commission approved increasing the low-income assistance credit from $40 to $50 per month for eligible households at or below 150% of the federal poverty level and directed DTE to use the commission-adopted definition of affordability in future analyses.
Commissioners praised staff and interveners for the record work and repeatedly emphasized the need to target investments to vulnerable communities. Commissioner Partic stressed the importance of strong evidentiary support for pilot programs, saying the record did not fully justify some undergrounding pilots. Several commissioners pointed to an independent distribution-system audit as a key tool for guiding future investments and required additional reporting and justification where the record was thin.
The order disallowed cost recovery for private corporate jet travel by DTE executives and board members and approved continued recovery for certain EV charging infrastructure investments tied to the company’s Transportation Electrification Plan. The commission also directed staff and the company to collaborate on an optional successor rate schedule for fast chargers.
The commission approved the order by unanimous voice vote; the order sets a test year and other ratemaking parameters and authorizes DTE to implement the approved rates after Feb. 6, 2025. The meeting then moved on to other docket items.
