The Michigan Public Service Commission approved another rate increase for DTE Energy on Friday, following the panel’s approval of a $30.5 million increase last year.
The commission voted unanimously to approve the 6.4% increase.
While the $368.1 million rate increase is a little over half of the $622 million the utility proposed, it would still mark a $6.51 monthly increase for customers.
DTE Energy spokesman Peter Ternes says the utility decreased its own Power Supply Cost Recovery (PSCR) system by $300 million last month. PSCR is the mechanism DTE Energy uses to pass down its own transportation and fuel costs to the consumer. Ternes states the reduction in the PSCR will offset much of the rate increase and estimates DTE Energy customers would actually see a $3 monthly increase to their bills instead of $6.51.
Officials for the utility claim the rate hike is needed to address infrastructure and improve reliability. Michigan has some of the highest energy costs in the Midwest — and one of the least reliable grids.
DTE Energy generated over $1 billion in revenue last year and hasn’t failed to turn a profit for shareholders in over a century.