Nessel Seeks to Slash DTE's $574 Million Rate Hike Request by 75 %

Michigan Attorney General Dana Nessel has taken a firm stance against DTE Energy's latest rate hike proposal, urging the Michigan Public Service Commission (MPSC) to significantly reduce the requested increase.

 

In April 2025, DTE filed for a substantial $574 million annual rate increase, which would result in an 11% hike for residential customers. This request comes merely three months after the MPSC approved a $217 million increase for the utility.

 

Nessel contends that such frequent and substantial rate hikes place an undue burden on Michigan residents.

 

In her testimony, Nessel recommended slashing DTE's proposed increase by nearly 75%, advocating for a more modest 2.5% rise instead of the 11% initially requested. She emphasized the need for DTE to prioritize customer funds towards essential services like vegetation management and tree trimming, which are proven to enhance grid reliability more effectively than costly infrastructure projects.

 

"DTE is once again showing us where its priorities lie – and it isn’t with Michigan ratepayers," Nessel stated. "Just months after being granted a $200 million rate hike, DTE is back at the trough demanding half a billion dollars more from its customers."

 

She further criticized the utility's spending practices, highlighting that a significant portion of the proposed hike does not demonstrably improve service or cost-effectiveness, but rather benefits executives and shareholders.

 

This pattern of repeated rate increases has drawn significant public scrutiny. Nessel's intervention reflects a broader concern about the sustainability of such hikes and their impact on consumers.

 

In response, DTE spokesperson Ryan Lowry emphasized the company's commitment to maintaining affordability while improving reliability. He noted that DTE bills have only grown by 3% over the past four years and that recent investments have led to a nearly 70% improvement in time spent without power in 2024.

 

The MPSC's decision on this rate hike request will be closely watched, as it will significantly impact the financial burden on Michigan's energy consumers.

 

As the debate continues, Michigan residents await a resolution that balances the need for infrastructure improvements with the imperative of keeping energy costs manageable.