MPSC approves DTE rate and reliability package, directs tighter oversight and protections for low-income customers

The Michigan Public Service Commission on Feb. 19 approved an order in DTE Electric Company's general rate case (U-21860) that authorizes new reliability investments, confirms a 9.90% return on equity and allows the utility to implement rates on or after Feb. 24, 2026.

Staff described DTE's filing seeking about $574.1 million in increased retail rates and multiple capital projects. The order adopts a 2026 test year and approves investments intended to improve reliability and safety, including $200 million for pole and pole-top maintenance, undergrounding pilot projects, and funding to pursue a five-year cycle for tree trimming. It approves $348.8 million in distribution investments for 2026 and $282.5 million in 2027 while limiting longer-term expansion of the investment recovery mechanism (IRM) beyond 2027.

"Applying discipline to compensation and procurement is essential," Commissioner Peritic said during discussion, arguing the commission must ensure costs are reasonable. Peritic cited projects approved in the order while urging protections against customers bearing excessive costs tied to new technologies.

Commissioner Peritic also criticized a proposed compensation mechanism for battery projects in another docket, saying in that context that "applying the FCM to both the fixed energy payment and the charging cost would effectively allow the utility to earn twice on the same operational cycle." The commission conditioned approval of that separate PPA to address the concern.

Commissioner Myers emphasized affordability and accountability, noting the order directs DTE to analyze shut-off data, restoration times and balances and to expand efforts to educate and assist low-income customers in accessing weatherization and energy-efficiency programs. "If customers are paying more, they must be getting more," Myers said, adding that the commission will require verifiable evidence that proposed investments deliver reliability and safety benefits before approving further expansions of the IRM.

The order requires DTE to justify future spending with benefit-cost analysis and to demonstrate how distribution-system investments align with the commission's distribution-system planning and prior audit findings. It also directs the utility to produce an interim report on tree-trimming costs and benefits and to track progress on the five-year trim cycle; failure to meet requirements could lead to disallowances.

The commission voted unanimously to approve the order. Commissioners Dan Scripps, Peritic and Myers recorded affirmative votes.

What happens next: the order authorizes DTE to implement the approved rates on or after Feb. 24, 2026. The commission directed ongoing reporting and analysis and left open future review of longer-term IRM expansions pending clearer evidence of benefits.