MI Officials Reject DTE Plan To Allow Early Payments From Customers

MICHIGAN — The Michigan Public Service Commission denied a DTE Energy proposal to allow customers to pay their electric bills early, something Michigan Attorney General Dana Nessel said would save nearly $13 million for customers.

Nessel said the $12.6 million proposal would strip away customer protections by shifting away from the traditional "postpay" model. The new proposal would have allowed allowed electric customers to pay their bill before using the energy instead of after.

"While programs such as DTE’s prepay proposal may appear harmless on their face, it is important to understand how the program is structured, what protections ratepayers are being asked to forfeit, how much the program will cost, and who will ultimately pay for the program," Nessel said.

Nessel said the plan would spread the $12.6 million cost to all the utility's customers, while only those enrolled in the program would see the benefits. In addition, Nessel also said the proposal would harm low-income customers since it would allow the utility to disconnect customers from service faster if they failed to pay.

"The structure and costs associated with this program were a bad deal for consumers, especially lower-income customers who might have found themselves forced into the program," Nessel said. "I appreciate the MPSC’s attention to the very real risks for customers in this case."

DTE spokesman Brad Carroll told MLive the proposal could benefit customers with an established payment schedule and will work with state officials to find a solution.