DETROIT (WWJ) — DTE Energy is preparing to ask state regulators for a $474.3 million rate increase next week to fund electric grid improvements, but the utility is pledging to hold off on any subsequent rate hike requests for at least two years.
The formal request, which will be filed with the Michigan Public Service Commission (MPSC) on April 28, kicks off an approximately 10-month regulatory review process. If approved, the rate changes will not affect customer bills until late February 2027.
Following this filing, DTE says it will not seek another rate increase until at least 2028.
“Now more than ever, we know affordability matters to our customers – and we’re doing everything we can to keep energy bills as low as possible while also providing the reliable power they need,” Joi Harris, president and CEO of DTE Energy, said in a news release.
Utility officials say the two-year pause is heavily reliant on the expansion of major data centers in Michigan, which are expected to offset costs for everyday customers. DTE's pledge hinges on its first supported data center project coming online as planned by the end of 2027, along with other regulatory approvals.
According to DTE, bringing large customers like data centers onto the electric system allows fixed costs to be spread more widely. The company has two data center contracts, one approved and one pending MPSC approval, that the utility claims will contribute nearly $9 billion to the electric system through 2045.
DTE explicitly noted that no costs related to the data centers are included in the upcoming rate request. The tech facilities are governed by separate contracts requiring them to pay the full cost of their own infrastructure, ensuring residential customers will not subsidize data center rates.
The $474.3 million request is aimed at supporting billions of dollars in continued investments toward grid hardening, automation, and tree trimming.
The utility noted that targeted investments are already paying off, reporting that 2025 marked its best reliability performance in nearly 20 years. DTE says it reduced the time customers spent without power by 60% compared to 2024, building on a 70% improvement the year prior.
“Reliable power isn’t just about keeping the lights on, it’s about supporting families, businesses and the broader Michigan economy,” said Matt Paul, president and chief operating officer of DTE Electric. “While we’re proud of our progress, we know we have more work ahead.”
