(WWJ) It's going cost Metro Detroiters a little bit more to fire up their light displays this holiday season.
The Michigan Public Service Commission announced that it has approved a $368 million rate increase requested by DTE Energy, which is more than 40% less than the $622 million rate increase the company had requested.
DTE says the amount a homeowner will pay about 11 cents more per day, or around $3 a month, because the utility has seen a $300 million cut in fuel and other costs.
According to DTE Vice Chair Trevor Lauer, a vast majority of the money will be used to for infrastructure improvements, meant to boost the reliability of the power grid.
"We have a massive system, so you have to keep investing in the system and rebuilding it," Lauer said, in an interview with WWJ's Miranda Richardson. "But all of the investment is focused on limiting the number of power outages we have, and then quickening the pace on how you restore customers when they do have a power outage.
The new rates will take effect in two weeks, on Dec. 15, 2023.
Meanwhile, regulators also approved DTE's request to accelerate the utility's ongoing tree trimming surge to clear trees and branches from around power lines, as fallen trees and branches are the leading cause of outages in Michigan. DTE has been directed to work with MPSC staff to study tree trimming on residential service drops — the electric lines between power poles and homes. Maintaining clearance around these service drops is typically the responsibility of homeowners but can have a major impact on the length of outages, officials said.
This all comes a year after DTE's last rate increase was granted in November 2022, when the MPSC approved a $30,557,000 rate hike. That was a 90% reduction from the $388 million the utility had requested.
