Attorney General Dana Nessel curtails DTE Electric’s proposed rate hike, preventing nearly $240 million in costs for Michigan residents.
Michigan AG Nessel’s Efforts Slash DTE Rate Hike
LANSING, Mich. — In a significant victory for Michigan ratepayers, Attorney General Dana Nessel helped reduce DTE Electric’s proposed rate hike by 52%, saving customers nearly $240 million. The Michigan Public Service Commission approved a $217.4 million increase, down from the utility’s initial request of $456.4 million.
The approved DTE rate hike, set to begin in February, represents a 5% increase for residential customers — about half of the 10% initially sought by DTE. The decision follows public outcry over rising utility costs and comes just 14 months after the Commission approved a separate $368 million rate increase for DTE Electric.
AG Challenges Unsustainable Rate Growth
Attorney General Nessel filed testimony urging the Commission to limit DTE’s increase to $139.5 million, citing concerns over affordability and corporate accountability. The Commission’s final ruling aligns partially with Nessel’s recommendations, cutting excessive expenses such as private jet travel and $39 million in incentives tied to shareholder profits.
“This case was filed immediately after DTE received approval for a staggering $368 million rate hike,” Nessel said. “Combined with this latest increase, DTE will collect nearly $600 million more annually from ratepayers in just over a year.”
Nessel applauded the reduction but criticized the ongoing trend of frequent and substantial rate hikes, stressing the need for more sustainable growth that prioritizes customer reliability.
Rising Utility Costs Burden Michigan Families
The 5% increase will add pressure on households already facing high energy costs. Michigan residents have expressed frustration with DTE’s frequent rate increases, compounded by concerns about service reliability during outages.
DTE explained the rate increase by highlighting the need for upgrades and rising operational costs to keep up with demand and ensure a reliable energy supply. Critics, however, believe the utility should better balance the needs of its shareholders with what customers can afford, arguing that frequent rate hikes hurt families and low-income households more. They call for DTE to be more transparent and accountable, pushing for fairer practices considering the financial strain on consumers while allowing the utility to function well in a competitive market.
Nessel’s Broader Fight for Consumers
Since assuming office, Nessel has saved Michigan ratepayers more than $3.4 billion through legal challenges and advocacy. Her efforts in 2024 alone included saving DTE gas customers over $150 million and curbing other utility rate increases.
She is also reviewing a $248 million gas rate hike proposed by Consumers Energy, filed five months after the utility was approved for a $35 million increase.
“My office will continue to stand up for Michigan consumers and fight these incessant rate hikes,” Nessel vowed.
Public Pushback Against DTE Rate Hike Practices
DTE’s frequent requests for rate increases have sparked criticism from consumer advocates and local leaders. Many argue that the utility’s spending priorities, including executive bonuses and travel, should be reconsidered.
Utility companies nationwide are grappling with aging infrastructure and rising operational costs, but Michigan residents are increasingly calling for greater accountability and transparency in rate-setting processes. As these companies face more regulatory scrutiny, many in Michigan advocate for reforms that promote more precise communication regarding how rates are determined and spent.
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