DTE officials said the rate hikes have been necessary to improve its electrical distribution system, including a massive surge in tree-trimming across its network, as well as costs associated with transitioning away from older, coal-fired power plants to natural gas facilities. The increase affects the utility’s 1.2 million residential and commercial customers.
“It signals that a big change might be coming in the relationship between regulators and investor-owned utilities,” she writes. ABATE frequently intervenes in DTE's rate hike requests. Nearby in Ann Arbor, Missy Stults, the city’s Sustainability and Innovations Manager, told Planet Detroit, “We’re acutely aware of the disproportionate energy burden that our low-income and minority populations are bearing.” She said the DTE rate increase is exacerbating that effect. © 2020 Insider Inc. and finanzen.net GmbH (Imprint). "Working the regulatory process is something they have a lot of experience doing — they spend a lot of money doing it; and they have it down to a science.". The Michigan Public Service Commission approved a 4.7% rate increase for DTE customers last week — less than the 9% increase DTE had requested in their June 2019 filing. Chris Lamphear, a corporate communications manager for DTE, wrote in an email, “We recognize that the COVID-19 crisis had an unfavorable impact on many of our customers and that is why we are providing up to $40 million in summer bill relief to lessen the impact.”. That number was heavily influenced by a major power outage across much of the state in March 2017 after sustained winds of more than 65 mph. Posted by Editor - Business News | Oct 4, 2020 | Energy | 0 |. In May, the Michigan Public Service Commission approved more than $273 million in rate hikes for DTE Energy, representing an 8.69% increase for average residential customers. “Inefficiency wastes large amounts of money and people aren’t taking that seriously.”. Stock quotes by finanzen.net. Residential customers using 100 cubic feet of gas a month will see a $2.97, or 3.9%, increase on their monthly bill starting Oct. 1. Also as a part of the agreement between the MPSC and DTE, the utility agreed to one-time donation of $1 million to The Heat and Warmth Fund. “It’s absurd that they would go through with a rate increase during a pandemic,” Bridget Vial, an organizer at the Michigan Environmental Justice Coalition, told Planet Detroit. Soulardarity Executive Director Jackson Koeppel calls the decision an “okay start,” adding that he’s seen some of DTE’s previous attempts to work with community partners left some community members feeling “strung along.”. More accountability should be required of the utility, said Amy Bandyk, executive director of the Citizens Utility Board. Consumers Energy, the state's second-largest electric utility, was second at 462 minutes. Search Engine Watch past honorable mention winner for Best News Search Engine. Commerce Policy | Among the infrastructure work being done is the replacement of 200 miles of water main to replace old cast iron and steel materials with high density plastic, Brudzynski said. That's a total increase of $3.60, or 4.7%, according to the MPSC. The decision also requires the utility to propose a system to link its performance with profits and to engage with community stakeholders in its next rate case. '", "Looking only at the number of outages per customer (not taking into account how long those outages last) and still excluding major event days, Michigan is actually slightly above average," the report states. Brandenburg cited data from the Citizens Utility Board of Michigan, a nonprofit organization representing residential electric customers' interests, showing DTE in 2017 had more average minutes of power outage per Michigan customer than any other utility in the state at over 1,000 minutes — almost three-quarters of a day in the dark per customer on average. Gerardo Norcia - … Bzdok noted that DTE's rate hike plan also includes a requested increase in their return on equity, their authorized profit margin allowed by regulators, from the 10% approved in May to 10.5%. Data shows DTE had more average minutes of power outage per customer, and longer waits to restore power, than any other electric utility in Michigan in 2017. Koeppel says that until the MPSC orders DTE to do solar projects that benefit low-income people and the community and not their stakeholders, they likely won’t unless they’re “legally required to do so.”. May 16, 2020 3 min read. Bandyk also criticized the continuing trend of residential customers receiving greater percentage increases than industries or large businesses. DTE Gas initially sought a $203.8 million rate hike through the state commission in late 2019, which was opposed by consumer advocates and Michigan Attorney General Dana Nessel.
We have a very large system; approximately 36,000 miles of infrastructure that we need to address.". "One important reason DTE wants to raise rates is to spend more on the distribution system, but they don’t provide any commitments to ensure that these investments actually improve reliability or reduce outage duration," she said. On making this decision amid the pandemic, MPSC Chairman Sally Talberg said in a press release, “There are pressing needs to upgrade aging infrastructure to ensure safe, reliable electric service.”. DTE gets a rate increase, along with more accountability 4 min read. All rights reserved. It's happening as the utility has come under fire for the frequency, and duration, of blackouts on its system, including power outages to 600,000 customers following strong thunderstorms passing through southern Michigan on July 20, which left some without power for up to five days. The new rates are set to go into effect one week from today, on May 15, 2020. The news comes after the MSPC previously approved a $188.3 million rate increase for DTE-- a 4.7 percent rate increase for DTE customers -- … "The study is taking data from 2017, a year when hurricane-force winds caused the most damaging wind storm in a century and the worst in our company’s history," DTE spokeswoman Randi Berris said. Addition news feed providers included online media suppliers, local and regional publications, industry journals, companies, governments, universities, PR companies, official organizations, associations, shopping guides and weblogs. The new annualized dividend per share is $4.34, up from $4.05. The Commission meeting can be viewed here.
Follow on Twitter @keithmatheny. Some advocates don’t agree. The Michigan Public Service Commission approved a 4.7% rate increase for DTE customers last week — less than the 9% increase DTE had requested in their June 2019 filing. This is a 7% increase from the previous quarterly dividend of $1.0125 per share. Made In NYC | In addition to reducing DTE’s requested rate increase, the MPSC reduced DTE’s requested increase on equity returns, rejected its request to convert the River Rouge plant from coal to natural gas, and rejected a fund request for information technology projects, according to the MPSC press release. Reading Time: 3 minutes. The judge determined that DTE had asked for $1 billion more than necessary to maintain safe and reliable electricity, according to a joint press release by community advocates. Only Florida Power & Light Co. received more in rate hikes from 2015 to this year, but that utility has more than double the customer accounts — 5 million to DTE's 2.2 million.
DTE gets a rate increase, along with more accountability 4 min read. Disclaimer | That’s a total increase of $3.60, or 4.7%, according to the MPSC, Read More At Article Source | Article Attribution. "We need to continue to harden the system so that it's more resilient for our customers," said Trevor Lauer, president and chief operating officer of DTE Electric. “Months after it received a rate increase from MPSC, DTE shows it is completely unconcerned about the savings accounts of its consumers," she said in a recent news release. DTE seeks $351 million in new rate hikes as early as May 2020, projecting an increase of up to $9.84 per month in a typical residential customer's bill. We had to file rate plans with MPSC to de-skew rates.". The company reduced its request to $188.5 million. Contact Keith Matheny: (313) 222-5021 or email@example.com. Rate increases for DTE Gas customers that took effect last week are expected to generate $110 million for the utility. That would have meant an increase for residential customers of more than 8%, which Nessel argued was excessive and unreasonable. © 2020 www.freep.com. Increased rates are set to begin for all DTE customers Friday. Within two months, DTE had filed another request with the commission to raise rates even higher for 2020. Reading Time: 3 minutes.
DTE Energy Company (NYSE:DTE) Q3 2020 Earnings Conference Call October 27, 2020 9:00 AM ET. Rate increases for DTE Gas customers that took effect last week are expected to generate $110 million for the utility. DTE seeks $351 million in new rate hikes as early as May 2020, projecting an increase of up to $9.84 per month in a typical residential customer's bill. "It creates an inaccurate data point. Going into the coronavirus crisis, DTE rate hikes were the second-highest in the country despite lagging reliability. ABATE is a coalition of businesses that are among the largest electricity and natural gas users in the state, including General Motors, Fiat Chrysler Automobiles, AK Steel and Dow Chemical. The agency typically reduces DTE's requests, but the hikes are still significant. Poor reliability has been a concern raised by multiple advocacy groups, as described in a report by the Citizens Utility Board of Michigan (CUB), an organization that represents residential customers in rate cases. However, with this new rate increase, customers will still be paying more for their electricity this summer. "This continues the needed investment in our gas infrastructure," Chair Dan Scripps said when the commission unanimously approved the hike in August. May 8, 2020 05/08/2020 7:00 pm (WWJ) If you have DTE Energy, your electric bill is about to go up. When a separate "infrastructure recovery mechanism" increase goes into effect in January 2021, those same customers will see an additional bump of about 63 cents, or 0.8%. DTE argued it needed the natural gas price hike in part to pay for infrastructure improvements and to account for decreasing customer use, according to a press release from the Michigan Public Service Commission from August when the body approved the increase. All rights reserved.
In DTE’s next rate case, MPSC will require the utility to create a community transition plan that incorporates community voices. For 2021, DTE Energy projects operating EPS in a range of $6.88 - $7.26 which is 7% higher than 2020 original operating EPS guidance. “We continue to have these rate increases for electricity when we’re not investing in the right thing, which is not using it in the first place,” Stults added. This site uses Akismet to reduce spam. Residential customers using 100 cubic feet of gas a month will see a $2.97, or 3.9%, increase on their monthly bill starting Oct. 1. The (Citizens Utility Board) report itself states 'excluding major event days, Michigan is actually slightly above average. DTE had previously announced that customers would save 3-4% this summer in bill relief due to the coronavirus shutdown resulting in cheaper electric generation costs.
DTE's average minutes to restore a power outage was also worst in the state in 2017, at 765 minutes. Lamphear said that some of the increased revenue will go towards addressing new reliability standards set forth in the decision, which requires DTE to develop a proposal for a system of “performance-based regulation.”. On average, 15 analysts expected the company to report profit per share of $1.94 for the quarter. DTE's rapid return to the MPSC seeking higher rates has raised the ire of state Attorney General Dana Nessel. "However, even with fewer outages, Michigan customers still spend more time in the dark than customers in most states, suggesting that Michigan utilities are particularly bad at restoring power once there is an outage. "It really comes down to investing in our electric grid and investing in green energy. As a state-regulated utility, the Public Service Commission must approve DTE's rate increases.
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