New audit on DTE, Consumers finds required time to restore service is "worse than average"
(CBS DETROIT) - A new Michigan Public Service Commission (MPSC) audit found that the time required to restore DTE Electric and Consumers Energy service in 2022 and 2023 was "worse than average among utilities."
The independent, third-party audit released Monday surveyed the two companies, which serve 4.1 million customers. The results come after MPSC launched an investigation in 2022 amid reports of widespread outages and public frustration, according to a news release.
MPSC said the audit, conducted by Pennsylvania-based Liberty Consulting Group, took over a year to complete and compared DTE and Consumers to similar utilities -- Commonwealth Edison and Ameren, both in Illinois, and Lansing Board of Water and Light in Michigan.
"It provides an unprecedented examination of the condition of the electric grid serving those customers, an incredibly valuable tool as the MPSC continues its work to reduce power outages, shorten the time for restoration of power after storms, and keep residents safe when power lines come down — in short, a roadmap to achieving a grid that meets customer expectations," MPSC Chair Dan Scripps said in a statement.
The Liberty Consulting Group will present the findings at Thursday's MPSC meeting.
The audit found that DTE customers who experienced four or more interruptions each year and experienced more than eight hours of interruptions "are greater than usually acceptable for utilities." More than 13% of DTE customers had four or more disruptions in 2023, while nearly 45% experienced eight hours or more. Meanwhile, more than 10% of Consumers customers had four or more interruptions in 2023, with 25% experiencing more than eight hours.
The report also found that more than 40% of DTE's 4.8kV transformers were installed between 1924 and 1960, and some of its 13.2kV transformers date back to the 60s. The company doesn't track the age of the transformers or the number of customers they service, according to the audit.
"We remain laser-focused on delivering on our commitment to our customers — reducing power outages by 30% and cutting outage time in half by 2029," said DTE Energy in a statement. "To meet that commitment, as well as the customer service standards set by the Michigan Public Service Commission, we've been making significant investments as part of our accelerated plan to quickly transition to a smarter grid, aggressively trimming trees, updating our existing infrastructure and rebuilding significant portions of the grid.
"We appreciate the audit team confirming that DTE's proposed investment plan will deliver the dramatic improvement in reliability that our customers demand and deserve in the next five years as well as recognizing the talent and experience of our team. They also point out that our plan is both ambitious and aggressive, and we accept that challenge.
"We are always looking for ways to improve our processes and programs and thank the audit team for recognizing our progress, as well as providing recommendations on improvements we can make to better serve our customers.
"We are currently reviewing the full report and will provide a formal response through the regulatory process. We look forward to continuing to work with the Michigan Public Service Commission on ways to provide our customers with cleaner, more reliable, and affordable energy."
With Consumers, the audit found that 62% of its low-voltage distribution poles are classified as small in diameter and more likely to break in storms. Additionally, as many as 18% of Consumers customers have distribution infrastructure in difficult-to-service back lots.
"The MPSC audit on our company's storm response has been constructive, and we appreciate the deep experience and expertise Liberty brought to the process," said Consumers Energy spokesperson Katie Carey in a response to the audit. "Consumers Energy proactively provided data, information and access to our facilities to Liberty. Michiganders are facing more severe and frequent storms, which is why we announced our Reliability Roadmap in 2023, a blueprint for fewer and shorter outages including no customer going more than 24 hours without power. Our investments are focused on the customers we serve by adding technology, burying power lines and clearing trees. Consumers Energy will continue to advocate to build a smarter and stronger power grid that serves Michigan reliably 24/7."
"The audit underscores that now is the time for both companies to focus more on strategic investments to prevent outages rather than reacting to them," Scripps said.