Michigan – The Michigan Public Service Commission (MPSC) has ruled against DTE Electric’s bid to recover $33,774,728 in expenses that the utility company sought using its cost recovery proposal, a decision that is benefiting people of Michigan. Delivered this week, the ruling was mostly shaped by arguments made by Michigan Attorney General Dana Nessel, who maintained that these expenses were neither required nor advantageous for electric customers.
Regulated utilities such as DTE Electric file MPSC cost recovery cases annually. These applications, which differ from requests for rate increases, seek to pass on expenses to consumers utilities incur in acquiring power to satisfy the state’s electrical demand.
The legitimacy of these expenses, especially if they seem to help shareholders or follow reckless management practices like improper handling of power plant failures or participation in non-competitive power buying agreements, is under question, though.
Read also: Another multi-state lawsuit filed against Trump administration for mass firing of federal employees
In this particular case, the MPSC found that DTE’s inadequate control of many power plant outages resulted in expenses totaling more than $30 million The commission’s strong position in its February 27th order emphasizes the continuous difficulty in making sure utility firms run their business responsibly without passing unwarranted expenses on consumers.
“Regulated utility corporations often seek permission to recover certain increased costs they incur to deliver Michiganders’ energy supply but, in all instances, they must show these expenses were in the interest of their customers and procured at competitive costs,” said Nessel. “DTE failed to make the mark here, and not for the first time. My office will continue to argue before the MPSC to keep unsupported and wasteful cash outlays made to boost corporate profits or for any other improper purpose off Michigan ratepayers’ bills.”
Read also: Detroit strengthens fire safety education with virtual seminar on fire prevention strategies
The same day, the MPSC issued another significant order against DTM Michigan Lateral Company, a pipeline owner and operator, whose main customer is DTE Gas. The commission disapproved of $7,537,566 in unsupported expenses in this separate filing This ruling resulted from the intervention of the Attorney General following an extensive investigation in a court envirosetting. The decision prevents DTE Gas customers from paying more than $7.5 million in fees.
The MPSC’s February 27th rulings taken together guarantee a total savings of $41,312,294 for Michigan ratepayers. This financial relief is part of a broader effort by Attorney General Nessel, who has been instrumental in saving nearly $3.7 billion for Michigan residents since taking office.
Read also: Flint secures $472,000 grant to improve rental housing accessibility for residents with disabilities
Regulatory authorities and supporters like Nessel, who are dedicated to guarantee fair energy pricing and ethical corporate behavior in the utility sector, constantly monitor DTE Electric, which serves roughly 2.3 million customers in Southeast Michigan, and DTE Gas, serving 1.3 million across the state.