UPDATED: Attorney General Opposes DTE Rate Hike; Utility Defends It

LANSING, MI ­– Michigan Attorney General Bill Schuette said Wednesday that he will attempt to limit rate hikes that could increase DTE Energy Co. electric bills by another $75 a year — on top of a $114 annual increase that took effect a few months ago.

If approved, Michigan would have the highest electric rates in the northern Midwest, according to a January report from the U.S. Energy Information Administration.

“Electricity is a basic need for families and businesses across Michigan,” Schuette said in a statement. “I am asking the Michigan Public Service Commission to closely examine the request being made by DTE that will raise rates for a second time in just a short period.”

The new rate increase would place the full cost of peak demand electric production on residential ratepayers. Currently, business and industrial customers pay a portion of those production costs.

The MPSC has twice rejected the shift.

In addition to increasing residential rates by about $75 a year, small business customers could see a 10.3 percent increase ($115.4 million) and large industrial customers would see an increase of 6.9 percent ($76.2 million).

DTE Energy said in a statement that its residential rates are among the lowest 25 percent in the country:

“Over the last eight years, DTE has kept electric operating costs flat, while its peer utilities across the country have increased operating costs 33 percent on average. DTE’s residential customer bills today are about $100 a year less than the national average.

“Rates for DTE industrial customers are below the national average today and will remain there even with the requested rate adjustment. Through the company’s long-term efforts, DTE has been and remains a national and industry leader in controlling costs.

“Residential electric bills, even with the requested rate adjustment, will be about the same as they were in 2012. With expected reductions in our power recovery costs, customers should see little if any impact in their bills. Industrial rates are currently, and will remain, below the national average.”

The MPSC will hold a public hearing on the proposed rate increase at 9 a.m. Thursday, March 3, before Administrative Law Judge Sharon L. Feldman at the Michigan Public Service Commission 7109 West Saginaw Highway Lansing.

Any interested person may attend and participate. The hearing site is accessible, including handicapped parking. Persons needing any accommodation to participate should contact the Commission's Executive Secretary at (517) 284-8090 in advance to request mobility, visual, hearing or other assistance.

You can read the request filed with the Michigan Public Service Commission here.