Attorney General Dana Nessel argued that DTE Gas Co.’s proposal for a rate hike was excessive and unreasonable, and the request was lowered by 57 percent.Gas, a Energy subsidiary, serves about 1.2 million consumers in Southeastern Michigan. According to the Attorney General’s office, the Detroit-based utility firm requested a $195 million rate hike, which translates to a more than 11 percent increase for residential consumers.
According to the Michigan Public Service Commission, DTE Gas requested the rate increase to support infrastructure expenses, operations and maintenance, information technology improvements, make up for the termination of accelerated deferred tax amortisation, and compensate for decreased anticipated sales. In a June testimony, Nessel argued that due to the company’s revenue shortfall, DTE should receive no more than a $19 million annual increase. , according to Nessel, should split the expenditures so that everyone pays their fair part.
The MPSC approved a rate increase of $84,173,000 this week, which is approximately $111 million less than the initial proposal. Beginning January 1, 2022, customers’ bills will reflect the increased rate. The average home customer will experience a 3.7 percent rise, or $3.18 per month, in their monthly bill. DTE Gas’ performance was one of the reasons the commission decided to lessen the request.
The MPSC agreed to allow DTE to recover 20% of financial incentive compensation tied to operational criteria, rather than the entire 100% compensation sought by the corporation. The MPSC expressed concern that the corporation would not reach the incentive’s performance targets.