MPSC approves $242.2 million rate increase for DTE customers—customer outage times reduced

by Kyle Davidson

Members of the Michigan Public Service Commission gave their unanimous approval to DTE Energy’s request to collect an additional $242.4 million from its customers to support upgrades to its energy grid.

As one of the largest energy companies in the state, DTE provides energy to 2.3 million customers across southeast Michigan. On average, residential ratepayers can expect to see their bill increase by $4.23 a month, DTE said in a statement. The new rates will take effect March 5, 2026.

Both DTE and the Public Service Commission pointed to improvements in the company’s reliability, with DTE facing years of criticism around high rates and frequent, lengthy outages.

“We know affordability matters to our customers and we take that responsibility seriously,” Matt Paul, DTE’s president and chief operating officer, said in a statement. “Today’s order from the Michigan Public Service Commission supports continued investments that are already delivering results – 2025 was the most reliable year for DTE Electric customers in nearly two decades.”

Ahead of the vote on the rate increase, Commissioner Katherine Peretick noted that DTE had reduced customer outage times by 60% compared to 2024, following a 70% reduction in outage time from 2023 to 2024.

Commissioner Shaquila Myers said a failure to make additional investments into the grid would cost customers more in the long run. However, she acknowledged that when energy rates rise, that impact is not felt evenly. 

“It is felt most acutely by low-income customers, seniors on fixed income and communities that already face disproportionate burdens through shut offs of service,” Myers said. She noted the commission’s order requires DTE to thoroughly analyze shut off data and determine non-payment shut offs, the average time for restoration, the duration of shut offs, shut off in arrearages balances, and any other factors that could provide insight on disconnections. 

“We must strike a balance that protects public safety, strengthens the systems for the long term and avoids unfairly burdening customers today,” Myers said.

The commission also directed DTE to improve its assistance programs for low-income customers by providing better education on how to access assistance and access funding for weatherization and energy waste reduction and efficiency programs to help reduce their energy costs.

While the final rate increase approved by the commission was 58% lower than DTE’s initial $574.1 million request,  Michigan Attorney General Dana Nessel noted in a statement that she had requested a 75% cut to the utility’s request, criticizing the company’s continuous requests for rate increases.

“While my office has been an unwavering advocate for consumers, at a certain point we must ask whether this system is truly serving the people it was designed to protect,” Nessel said. “Reliability and affordability should be a priority, yet time and again we see proposals from DTE and Consumers Energy that emphasize costly capital projects over commonsense investments that more directly reduce outages and improve services.”

Commissioners rebuff Nessel on request to rehear case on Consumer’s Energy data center rates

Alongside approving DTE’s request for a rate increase, the commission denied Nessel’s request for a rehearing in a previous case filed by Consumers Energy, seeking to modify its rate structure for data centers and other large energy load customers. 

“Consumers Energy supports residential customer protections associated with large new loads coming to Michigan, which are reflected in the tariff approved by the MPSC,” Consumers Energy Director of Media Relations Katie Carey said in a statement. “We continue our work to attract new businesses, including data centers, to Michigan, in a way that benefits everyone and fuels high paying jobs and increased tax base for the state. The protective tariff reaffirmed by the MPSC today ensures that data centers pay more so other customers pay less.”

First published by Michigan Advance. Used here with permission.