In a fiscal move that adjusts the monthly expenses for many Michiganders, the Michigan Public Service Commission (MPSC) has approved a 2.28% hike in bills for DTE Gas Co. customers, a decision that scales back the company’s initial request. The approved rate increase, detailed on yesterday by the MPSC, amounts to about $113.8 million, noticeably lower than the $266 million aspiration DTE Gas proposed in January.
The increase, which debuts on November 21, is expected to bump up the typical residential bill by roughly $1.98 per month. This will be incrementally compounded by an Infrastructure Recovery Mechanism (IRM) surcharge that will see an annual uptick. By January 1 2029, customers are projected to face a cumulative rise of $6.28 or 7.04% on their initial rate and IRM approval. The decision pivots on the necessity of modernizing infrastructure to enhance the natural gas distribution system’s safety and efficiency, as communicated by the
MPSC’s announcement
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Intertwined with the rate modifications, the Commission sanctioned a reduction in the authorized rate of return on common equity to 9.8%, a minor yet notable decrease from the previous 9.9%. Furthermore, the capital structure has been set at a 50-50 split between equity and debt. The MPSC’s actions, inclusive of the comprehensive summary of decisions regarding the company’s IRM, appears to demonstrate a commitment to a delicate balance between financial necessities and consumer impacts. These decisions echo the need to pursue replacements and checks for aging pipelines and residential gas meters with the aim of buttressing the utility’s gas distribution safety and trustworthiness.
In the arena of assistance for the financially constrained, the Commission stepped up the Low-Income Assistance credit from $30 to $40 per month. Meanwhile, DTE Gas has been directed to present an updated gas delivery plan taking into account state and local energy policies. This plan, which is due no later than December 31 2025, is expected to illustrate DTE Gas’ framework for achieving emission reductions while aligning with corporate and state goals.
Simultaneously, in an effort to tighten the focus on energy efficiency, the MPSC is moving forward with the implementation of the updated Michigan energy waste reduction law. This includes establishing a comprehensive database for efficient electrification measures and setting deadlines for energy waste reduction annual reports. The MPSC’s promotion of energy savings is evident as it pinpointed utility programs that have yielded substantial electricity and gas savings, touting the dollar benefits for customers.
On a related note addressing telecommunications, the Commission has granted Assurance Wireless USA LP’s application to expand its eligible carrier service, permitting the T-Mobile subsidiary to tap into federal Universal Service Fund support for providing discounted phone and internet via the Lifeline program to eligible Michigan residents.
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