Michigan Utilities Ordered to Improve Reliability After Storm Audit

LANSING, Michigan — The Michigan Public Service Commission (MPSC) has mandated the state’s largest utilities, DTE Energy and Consumers Energy, to implement 75 recommendations from a recent audit aimed at improving electric reliability and storm restoration times. The order follows severe storms in August 2022 that left nearly 500,000 customers without power for several days, resulting in tragic incidents including the death of a young girl.

Commissioner Katherine Peretick stated, “After a thorough and detailed audit process, now is the time for implementation.” The audit, conducted by The Liberty Consulting Group, came in response to longstanding reliability issues the utilities face.

Both utilities serve over four million customers in Michigan. DTE spokesperson Ryan Lowry emphasized that the PSC’s directive aligns with their commitment to reduce outages by 30% and halve outage duration by 2029, following a $1.5 billion investment in the energy grid last year. Consumers Energy expressed their dedication to delivering reliable service and improving storm response.

The audit revealed that tree limbs and aging equipment are leading causes of outages. The PSC has requested utilities to improve tree trimming practices and prioritize timely inspections and replacements based on the actual condition of equipment.

PSC Chair Dan Scripps noted, “The steps the commission is outlining today build on what we’ve learned from the audit.” The commission has mandated that both utilities provide reports on downed wire policies by August 29.

Consumer advocacy groups have welcomed the regulators’ actions, citing longstanding frustrations with the utilities’ performance. Amy Bandyk, executive director of the Citizens Utility Board of Michigan, stated, “The commission is now instructing these utilities to timely inspect all aspects of the system and make repairs.”

Utilities are also required to justify their rate hike requests to state regulators. Both DTE and Consumers have made recent requests for increases, with Consumers seeking a 9.2% rise and DTE asking for $574 million, which would result in an 11.1% increase for residential customers.

Ensuring a reliable power supply is critical, especially after the disturbing impacts of past storms. The new directives aim to enhance the safety and dependability of Michigan’s power grid, paving the way for future improvements.