Case: U-20836
Initial Filing Date: 1/18/2022
Summary: 0.78% Residential
Effective Date: 11/25/2022
Status: Settled
Type: Electric
On 11/18/2022, The Michigan Public Service Commission authorized DTE Electric Co. to implement a $30,557,000 rate increase effective Nov. 25. DTE Electric, in January 2022, filed an application seeking a $388 million rate increase, to recover increased investments in its generation and distribution systems to improve safe and reliable electric service to its 2.3 million customers in southeast Michigan.
The Michigan Public Service Commission agreed, approving a $30.5 million rate increase for DTE Energy’s electric customers, rejecting 90% of what DTE had asked for. The new rates will mean a monthly bill increase of 71 cents, or 0.78%, for a typical electric customer consuming 500 kilowatt-hours of electricity per month.
The order authorizes a jurisdictional rate base of $20,406,679,000, a rate of return on common equity of 9.9% and an overall rate of return of 5.42%. The Commission adopted a 50/50 debt to equity capital structure, a long-term debt cost rate of 3.69%, and a short-term debt cost rate of 1.74%.