Weeks, or even days, after getting permission to increase electric rates for millions of Michiganders, the state’s two largest power companies are starting the process all over again.
Both DTE Energy and Consumers Energy have filed required paperwork announcing intentions to pursue rate hikes that can increase power bills in the coming months, and they’re taking flak from Michigan Attorney General Dana Nessel for the speedy turnaround.
“By allowing Consumers Energy and DTE to file a new rate hike every twelve months, the state is allowing these billion-dollar businesses to ask for more and more before anyone can even gauge the impact of the previous rate hike,” Nessel said in a statement. “Meaning they’re back asking for more money before anybody knows if their proposed investments made any difference in reliability or affordability for customers.”
This year will be the sixth in a row Consumers has sought to raise power rates, while DTE marks four consecutive years seeking to do so.
An MLive analysis of state data in 2024 showed a slight acceleration in how frequently the utilities do so, compared to a decade ago, and the hikes are a sore spot for some customers.
Read more: ‘Burden’ or path to reliability? Michigan utilities seek more frequent rate hikes
Regulators approved a $217 million increase for DTE power customers in January, and Consumers got the green light to raise rates $154 million in March. Each equated to less than $5 a month more for the typical residential customer.
By law, the big, for-profit utilities are permitted to ask regulators for an increase not more frequently than once every 12 months.
A Consumers filing submitted seven days after its last rate increase was approved indicates it may do so as early as the first business day it is legally permitted this year, June 2. DTE may wait just under a year and a month between asks, filing an application as soon as April 23, per its announcement.
Both utilities pushed back on criticism leveled by Nessel, whose office scrutinizes the increases in a legal process before regulators called a “rate case,” seeking to minimize the impact on customers.
In statements, spokespeople for both companies noted any bill adjustments won’t be finalized until 2026, given the process takes 10 months to play out and hasn’t begun in earnest yet.
DTE touted its use of ratepayer funds to improve reliability, noting a 70% betterment in time customers spent without power between 2023 and 2024, though the utility acknowledged less severe weather may have also played a role.
“When we invest, it works,” said DTE spokesperson Ryan Lowry. “Our upcoming rate case filing will build upon this success as we continue work to improve electric reliability for our customers and increase system resiliency in the face of increasingly extreme weather – like the state has experienced this week – while keeping bills as low as possible.“
Lowry added that DTE has connected customers to nearly $144 million in energy assistance and advocated for lawmakers to expand state utility aid programs.
Both DTE and Consumers — which together serve over 80% of the state’s electric customers — have previously defended their practices, saying customer bills have risen at rates well below the rate of inflation in recent years. The money is necessary to update the aging power grid and fund a transition to cleaner power sources, they say.
Consumers spokesperson Brian Wheeler called the attorney general’s comments “misleading.”
“Consumers Energy has told state regulators we intend to file a rate request no sooner than June 2. We have not made an actual request,” he said.
AG spokesperson Danny Wimmer said Nessel is “obviously” not misleading anyone, pointing to the public documents Consumers filed on March 28 announcing its intent to seek a rate hike, one week after its last one was granted and before the new power rates even go into effect on April 4.
State rules require the utilities to give at least 60 days notice before filing hundreds of pages detailing the amount of the rate increase and what investments and maintenance it will cover. Those larger applications will detail how much they want to raise rates.
“Consumers Energy just got the green light to raise electric rates, and one week later they’re back with their hands out before putting any of their new earnings to work for their customers,” Nessel said.
She said her office would continue to hold DTE and Consumers “accountable” in legal proceedings before regulators, exposing “unjustifiable” costs they ask to include in electric rates.
In the past, Nessel’s office has drawn public attention to some proposed utility expenses, like corporate jet travel for DTE executives and board members, ultimately denied by regulators for inclusion in rates.
The AG’s Office joins dozens of environmental groups, consumer watchdogs, business organizations and large power users in seeking to reign in or modify utilities’ rate asks.
Hundreds of pages of their legal testimony often focuses on highly-technical or mundane issues, like the pace of power plant upgrade projects or if utilities’ should be able to use customer funds to renovate office buildings. Consumer advocates also scrutinize grid investment and maintenance plans, looking to ensure utility spending is cost-effective at boosting reliability.
The legal intervention frequently results in large cuts to utilities’ rate asks. Using the testimony as evidence, regulators have slashed them by as much as half in recent years.
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