DTE Energy Proposes Major Rate Hike Amid Criticism

Detroit, Michigan — DTE Energy, Michigan’s largest electric utility, has proposed a rate increase of $574.1 million, the second largest request in over two decades. If approved, residential bills could rise by approximately 11%, adding about $13.50 to the typical monthly bill starting in early 2026.

The Detroit-based company filed its request with state regulators on April 24, sparking immediate backlash from consumer and environmental advocates. Bob Allison, deputy director of the Michigan League of Conservation Voters, criticized the proposal, stating, “We already pay the highest energy costs in the Midwest for the worst reliability. This latest request is a slap in the face to Michiganders struggling to afford their bills.”

This year marks the fourth consecutive year DTE is seeking a rate increase for its 2.3 million customers. State law limits the frequency of such requests to once every 12 months. The current request is substantially lower than last year’s, which was for $622 million.

DTE officials emphasized that the filing initiates a ten-month review process, and customers will not see any increase in their bills until February 2026. DTE spokesperson Ryan Lowry stated, “This rate proposal supports ongoing work to improve electric reliability and system resiliency in the face of extreme weather while keeping customer bills below the national average.”

Despite the increase request, DTE has reported a nearly 70% improvement in the time customers experienced outages in 2024 compared to the previous year. The company attributes this progress to over $5 billion in grid investments made over the past five years.

The bulk of the proposed rate increases will address concerns identified in an audit conducted by DTE and Consumers Energy. Lowry acknowledged that the audit highlighted DTE’s slower-than-average restoration times for outages. Consumer advocates criticize DTE for prioritizing capital investments over regular maintenance, which they argue could enhance reliability without significant costs to customers.

In response, DTE claims to have increased spending on tree trimming to mitigate outages and maintain grid reliability. “DTE Energy is making progress on building the electric grid of the future – when we invest, it works,” Lowry added.

Additionally, the rate increase would support DTE’s transition away from coal-fired power, including funding the conversion of the Belle River plant to natural gas, a less polluting fossil fuel. DTE also intends to modernize the decommissioned Trenton Channel coal plant to accommodate renewable energy storage.

The rate case will undergo scrutiny from various stakeholders, including large industrial users and community groups, before a final decision is made by the Michigan Public Service Commission. In past cases, regulators have often reduced requested increases.

As the review process unfolds, consumer advocates like the Michigan Attorney General’s office are prepared to challenge the proposed increases. Assistant Attorney General Michael Moody stated, “It’s a difficult process but necessary to protect the interests of Michigan consumers.”