Commercial, Energy Procurement, Industrial, Power Prices, Utilities - February 5, 2016
DTE Electric rate request would lower bills for C&I customers
Michigan utility DTE Electric Co. filed a $344 million rate hike request with the Michigan Public Service Commission on Feb. 3. While the rate hike would increase residential utility bills, it would slightly decrease those for commercial and industrial customers, according to a Feb. 2 news release.
The purpose of the hike is to increase power grid reliability.
Under the rate request, commercial customers could see a 0.4% decrease and large industrial customers could experience an average cut of 5.6%, the electric utility said. Last December, DTE Electric received state approval to increase overall electric rates by 5.3%, or $238.2 million annually. The request was 36% below the $370 million it had requested, according to Crain's Detroit Business.
As a result of that rate hike, commercial customers’ rates went up an average of 3.4%. Industrial customers’ rates dropped an average of 2.4%.
DTE Electric says its commercial and industrial rates are below the national average. It's parent company, DTE Energy, serves 2.1 million electric customers in Southeast Michigan and 1.2 million natural gas customers in Michigan.
"Our customers want us to provide more reliable service while keeping the cost of energy affordable and competitive," Jerry Norcia, president and COO of DTE Electric, said in a statement. "We are making progress on both fronts."