Business & Tech
Expect to Pay More for Holiday Lighting Under Rate Hike
DTE Energy's first residential rate increase since 2011 takes effect, and it will cost customers about $8.22 a month more.
DETROIT, MI – Those holiday lights will cost DTE Energy customers more to run this year than last.
Customers will pay about $8.22 more a month for electric service under a rate increase that took effect Thursday.
Under the rate increase approved last week by the Michigan Public Service Commission, the company will collect an additional $238.2 million annually, MLive.com reports. The utility wanted a $370 million increase. DTE Energy last raised its rates in 2011.
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The increase affects residential customers using 500 kilowatts of energy.
In a statement, Public Service Commission Chairman John D. Quackenbush said the rate increase will help pay for the acquisition of two natural gas-fired plants to generate electricity, which is expected to improve the reliability and safety of DTE’s electricity grid.
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“The rates approved today are 36 percent below what the utility requested, and will result in a more reliable system, a cleaner environment, and rates that reflect the ongoing effort toward affordability,” Quackenbush said.
DTE said in a statement that even with the increases, residential rates are 8 percent below the national average, and commercial and large industrial rates have fallen by 10 percent to 15 percent over the past three years, while the national average has increased.
However, the The Michigan Conservative Energy Forum said the rate increase shows the need for increased energy efficiency and reliance on renewables in the energy overhaul the Michigan Legislature is considering.
“Michigan already has the highest electricity costs in the Midwest and this latest rate increase should be a call to action for the Michigan Legislature to rein in costs through energy efficiency and renewable energy goals,” Larry Ward, executive director of MCEF, said in a statement. “Now is the time for conservatives to lead by requiring the utilities to reduce energy waste and purchase low-cost renewable energy.”
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