DTE Energy seeking another rate increase. How much would residents pay?
(CBS DETROIT) - DTE Energy announced Wednesday it will be seeking approval from the Michigan Public Service Commission for a $456 million investment, which the company says equals 37 cents a day -- about $11 a month -- on average for residents.
The company said the increase would support a "smarter, stronger, and more resilient grid in the future."
"We're focused on improving reliability for our customers – reducing power outages by 30% and cutting outage time in half in the next five years. We're building a smarter, stronger, more resilient grid that will deliver the energy our customers demand and deserve," Matt Paul, DTE Electric president and COO, said in a statement.
"While the projects we're undertaking will provide our customers will cleaner and more reliable service, they also require large investments. As we continue to invest in the grid on behalf of our customers, we're committed to working as efficiently as possible, controlling our operating costs, keeping our residential bills below the national average, and providing assistance to our most vulnerable customers."
For many DTE customers, it's a shocker, especially since MPSC approved a $368 million rate increase in December.
Former Michigan Rep. Sherry Gay-Dagnogo expects the service commission to dig deeper.
"They have to put more teeth in their expectations of DTE before allowing another increase," Gay-Dagnogo. "I mean, simply talking about trimming trees and staying on track for trimming trees when people are worried about putting food on the table, that's no solace for them."
The company says the new request would help update existing infrastructure, rebuild portions of the grid, and continue supporting the tree trimming program.
DTE is planning to install 10,000 smart devices to allow the company to identify any damage for crews to repair faster.
The company is also looking to remove the use of coal by 2032 to a "net-zero carbon future." DTE officials say the investment would help convert the Belle River coal-fired plant to natural gas and develop an energy storage project at the site of the former Trenton Channel Power Plant.