(WWJ) Utility bills for more than one million DTE Energy gas customers will be going up.
The Michigan Public Service Commission has approved a $110 million rate increase for DTE, which means homeowners using 100 cubic feet of gas a month will see an increase of approximately $2.97, or 3.9%, on their monthly bills.
The rates will take effect Oct. 1, 2020 — just in time for colder weather in Michigan.
When an infrastructure recovery mechanism goes into effect in January 2021, the same customer will see an increase of approximately 63 cents, or 0.8%, for a total increase of $3.60, or 4.7%, according to the MPSC.
DTE was seeking a larger increase to pay for natural gas system upgrades and to offset lower gas usage, officials said in a notice Thursday.
Under the settlement with the MPSC, DTE Gas also agreed to:
• Make a one-time donation of $1 million to The Heat and Warmth Fund, which helps struggling households pay utility bills. The cost of the donation will be borne by DTE Energy shareholders, and not recovered from ratepayers. • Launch a demand response pilot program in winter 2021-2022 in line with recommendations from the MPSC's 2019 Statewide Energy Assessment to increase resilience when energy supplies or delivery are constrained. The company will hold a conference with interested parties to share and refine proposals and implementation. • Include a 10-year natural gas delivery plan in its next general rate case that will provide a framework for the next decade of investment in its natural gas infrastructure. Long-term infrastructure plans for gas utilities were recommended in the Statewide Energy Assessment to better prioritize investments based on cost, safety risk, resilience, and other factors. The agreement reflects an authorized rate of return on common equity of 9.9%, and a common equity ratio of 52%. The company agreed to file a plan for a more balanced capital structure in its next rate case.
This news come after the MPSC announced in the spring it had approved new, higher rates for DTE electrical customers. For most residential customers using 500 kilowatt hours of electricity, bills were expected to increase by around $4 a month under the new electric rates in effect as of May 15, 2020.
