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Attorney General Nessel challenges DTE Electric's proposed 10% rate hike

LEGAL NEWSLINE

Monday, November 25, 2024

Attorney General Nessel challenges DTE Electric's proposed 10% rate hike

State AG
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Attorney General Dana Nessel | Official website

Michigan Attorney General Dana Nessel filed testimony last Friday in DTE Electric’s rate hike case, aiming to limit the proposed increase. DTE Electric had requested an annual revenue increase of $456.4 million from the Michigan Public Service Commission (MPSC) in March, which would result in a 10% rate hike for residential customers. This request follows a recent approval by the MPSC of a $368 million annual rate increase.

Nessel contends that the proposed hike is excessive and unnecessary. She argued that DTE should receive no more than a $139.5 million annual increase, capping any residential ratepayer increase at approximately 2.5%. Additionally, she recommended reallocating customer funds toward vegetation management and tree trimming, which have been shown to be more effective at reducing outages compared to more costly capital-intensive options preferred by DTE.

“A deep dive into DTE’s latest electric rate case reveals a disturbing pattern of exaggerated projections and unsubstantiated projects that clearly prioritize corporate interests over customer benefits,” Nessel stated. “DTE is once again seeking MPSC approval to bill its customers for corporate jet travel by executives on top of these inflated costs. Such exorbitant expenditures not only inflate customers’ bills but also undermine DTE’s corporate pledges to reduce greenhouse gas emissions. These unnecessary costs directly contribute to rising utility bills.”

Since taking office, Nessel has saved Michigan consumers more than $3 billion through her interventions in utility cases before the MPSC. Her recent testimony underscores her ongoing commitment to ensuring affordable energy for consumers.

DTE provides electricity to approximately 2.3 million customers in Southeast Michigan and natural gas to 1.3 million customers across the state.

A copy of the Attorney General’s testimony can be found on the MPSC’s website (PDF).

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