Lansing, Michigan – In a bid to shield Michigan residents from steep utility rate increases, Attorney General Dana Nessel has stepped in to challenge a proposed 10% hike by DTE Energy, advocating for a significantly smaller increase of less than 3%. This opposition follows growing concerns about the spending patterns of the utility and how they affect consumer costs.
Serving almost 2.3 million electricity consumers and 1.3 million natural gas consumers across Michigan, DTE Energy requested in March with the Michigan Public Service Commission (MPSC) to increase its yearly revenues by $456.4 million. This demand came soon after the utility was approved in November with a $368 million yearly rate rise, already driving consumer rates by 10%.
But Nessel’s office said in a statement that DTE’s financial needs are out of line. Nessel testified to the MPSC arguing that the suggested rate increase should not be higher than $139.5 million, therefore restricting the rise to around 2.5%. She underlined that money should be wisely deployed for tree cutting and vegetation management—measures she says are cheaper and more effective in lowering outages than the more expensive, capital-intensive policies DTE favors.
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“A deep dive into DTE’s latest electric rate case reveals a disturbing pattern of exaggerated projections and unsubstantiated projects that clearly prioritize corporate interests over customer benefits,” Nessel said.
“DTE is once again seeking MPSC approval to bill its customers for corporate jet travel by executives on top of these inflated costs. Such exorbitant expenditures not only inflate customers’ bills but also undermine DTE’s corporate pledges to reduce greenhouse gas emissions. These unnecessary costs directly contribute to rising utility bills.”
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As citizens deal with the twin issues of growing living expenses and environmental sustainability, this conflict highlights a larger discussion about utility rate rises and corporate responsibility. The MPSC’s ruling in this case will probably create a major precedent for how Michigan’s utility companies strike operational needs against customer protection and environmental obligations.