Detroit Today: Michigan Public Service Commission chair on DTE rate hikes, utility oversight
Not all Michiganders realize that the MPSC regulates electric and natural gas utilities’ rates and services as well as activity related to state pipelines and telecommunications.
FILE — Dozens gathered in an auditorium for the Michigan Public Service Commission hearing on DTE proposed rate increase.
Last week, the Michigan Public Service Commission (MPSC) approved a rate increase for DTE Energy customers and greenlit the construction of a tunnel for Enbridge Energy’s Line 5 fossil fuel pipeline under the Straits of Mackinac, allowing the Canadian oil company to get closer to breaking ground on that project.
The Commission is composed of three members, appointed by the governor to serve staggered six-year terms. No more than two commissioners may represent the same political party, and one commissioner is designated as chairman by the governor. Not all Michiganders realize that the MPSC regulates electric and natural gas utilities’ rates and services as well as activity related to state pipelines and telecommunications — effectively overseeing billions of dollars of economic activity.
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Guests:
Dan Scripps is the chair of the Michigan Public Service Commission, which regulates public utilities in Michigan including DTE Energy. He says the commission ties DTE’s service to their financial profits.
“We are going to tie performance of the utility to how they make their money,” said Scripps. “Including an upside if they can get better faster and deliver the results that people expect, but some downside penalties if they continue to sort of lag the rest of their peers and deliver performance that everyone agrees is unacceptable.”
Rachel Gold is a principal with the Carbon-Free Electricity Practice at the Rocky Mountain Institute. She’s an expert on utilities and their regulators. She says public service commissions need to set performance standards for public utilities.
“It’s really important that commissions have a clearly articulated mandate and purpose, and that they hold utilities to performance that matches that,” said Gold.
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