Michigan Electric Bills Are Going Up

Matthew Donnellon

Today the Michigan Public Safety Commission approved a $368 million rate hike for DTE Electric Co. customers.

It was lower than the $622 million rate hike the company initially asked for. 

The company requested the funds in order to improve system reliability and to increase deployment of new clean energy standards. 

According to the Michigan Public Service Commission’s website, “a typical residential customer who uses 500 kilowatt hours of electricity per month will see an increase of $6.51, or 6.38%, on their monthly bill. The new rates will take effect Dec. 15.

Initially, DTE requested a 10.25% return on equity and a 50-50 debt to capital structure. The commission approved a return of 9.9% and 5.56% on a jurisdictional base rate. 

Also the Commission put in a 2 year investment recovery mechanism that will allow it to track how DTE is spending the money and to make sure they are using the money to invest in Michigan’s electrical grid. 

The investments will include circuit conversions, redesigning and rebuilding equipment, and replacing underground residential distribution systems. 

The Commission put a two year time limit on the investment recovery mechanism so that it can include the results of an audit currently in progress. 

The commission also approved funds to improve and modernize the state’s electrical grid. To address certain safety issues in Detroit they also approved funding to harden the city’s 4.8 kV grid. 

In addition, it also approved $2 million in funding for DTE Electric Company’s pilot program to give $1,500 in rebates for income eligible households to purchase electric vehicles.

DTE Electric currently serves 2.3 million customers in Southeast Michigan.  

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Matthew Donnellon is a writer, artist, and sit down comedian. He is the author of The Curious Case of Emma Lee and Other Stories

Detroit, MI

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