MPSC approves DTE Gas order, directs updated gas delivery plan and raises low-income credit

The Michigan Public Service Commission on Nov. 7 approved the DTE Gas rate order in case U-21291 after hearing staff’s presentation and extensive intervenor testimony. Kayla Gibbs, a commission adviser, summarized the company’s request and the commission’s determinations.

Gibbs said DTE Gas filed for authority to increase annual gas sales revenue by $266 million based on a projected 12‑month test year ending Sept. 30, 2025, and that the net increase to customer rates shown in the application was $160 million. The commission adopted a capital structure of 50% equity and 50% debt and set a rate of return on common equity of 9.8% as described in the order.

The order addresses inclusion of certain capital expenditures in the infrastructure recovery mechanism (IRM), adopts a level of main replacement spending and disallows specified projected expenditures tied to inline inspection timing. The commission directed DTE Gas to include forecasted yearly sales for each major customer class in a 10-year gas delivery planning horizon and to file an updated gas delivery plan no later than Dec. 31, 2025, showing how the company will consider energy transition pathways, costs, risks and interim goals for emissions reductions.

A commissioner noted the order will amount to about a 2.28% increase in bills for the typical residential DTE Gas customer; the commission also increased the low-income assistance credit from $30 per month to $40 per month. The order authorizes DTE Gas to implement the approved rates on or after Nov. 21, 2024. Commissioners voted unanimously to approve the order.