Michigan Attorney General Dana Nessel is planning to intervene in DTE’s latest rate hike proposal filed last week before the body tasked with holding utility companies accountable on behalf of residents.
DTE’s latest hike would raise natural gas rates by $237 million annually. The rate hike would amount to an 8% increase to the bills of residential customers, a 10% overall increase for DTE gas customers.
“Natural gas plays a vital role in everyday life — from heating homes to cooking meals,” DTE president and COO Bob Richard said in a statement. “This request allows us to continue investing in the safety and reliability of our system, while keeping costs low for the customers who depend on us for generations to come.”
Critics say energy costs are already too high.
Nessel credits her intervention in saving residents more than half of what DTE initially sought. The utility company’s rate hike last year totaled $113 million.
Nessel in a statement accused the utility of asking families to pay more Michigan for utility services “simply to pad corporate profits.”
Nessel said the Department of Attorney General will scrutinize the filing to ensure customers do not pay any costs that do not have commensurate quantifiable benefits.
“If recent history tells us anything, it’s that this new rate hike request will be filled with costs that simply cannot be justified,” Nessel said. “Time and again, we’ve seen DTE try to pass on to its customers millions of dollars in unnecessary expenses, such as private jet travel for its executives. My office will go through this proposal with a fine-tooth comb to make sure every dollar DTE wants to collect from ratepayers is tied to a clear and measurable benefit.”
Nessel said her office has saved consumers more than $4 billion by intervening in utility cases before the Michigan Public Service Commission (MPSC).
DTE sells natural gas to 1.3 million customers across the state and electricity to approximately 2.2 million customers in Southeast Michigan.
It is regulated by the three-member MPSC, which earlier this year came under scrutiny after the appointment of a former advisor to the governor, Shaquila Meyers. Whitmer appointed Myers after declining to reappoint Alessandra Carreon to the body that has the power to approve rate hikes.
Carreon, whose term was cut short four years early, was viewed by advocates as a champion for consumers. She was instead named the state’s chief climate officer within the Department of Environment, Great Lakes and Energy
No explanation was given from other members or the governor when Carreon wasn’t reappointed.
Myers previously served as chief of staff for former House Speaker Joe Tate, D-Detroit, who has been criticized by opponents to his left for taking corporate cash from utility companies.
While Myers served as chief of staff to former House Speaker Joe Tate, D-Detroit, the speaker’s office nixed multiple legislative packages during the 2023-24 session with energy and environmental policies that were opposed by DTE Energy Company and Consumers Energy Company.
Utility companies are influential political players in crafting state policy and are significant donors to lawmakers on both sides of the aisle.
A citizens-led initiative, Michiganders for Money out of Politics, is currently collecting signatures to ban utilities from political donations.
Traverse City Democrat Betsy Coffia wrote to Sen. Majority Leader Winnie Brinks, D-Grand Rapids, earlier this year argued the Senate should hold an advice and consent hearing into Whitmer’s appointment of Myers.
The Senate can reject Whitmer’s appointments to the body. However, since Democrats took control of the chamber in 2023, there hasn’t been any hearings over Whitmer’s appointments.
