January 23, 2025
Lansing, MI – The Michigan Public Service Commission (MPSC) issued its final order in DTE Electric Company’s rate case, approving a rate increase of $217 million, less than half of its requested $456 million while maintaining DTE’s return on equity of 9.9%.
The Clean Energy Organizations (CEOs), who intervened in the case, appreciate the Commission’s attention to affordability and reliability, but urge continued work to advance grid equity and clean energy adoption.
The CEOs support the Commission’s decision to approve DTE’s electric vehicle investments, which will expand charging infrastructure as more drivers opt for EVs. This includes $12.5 million in capital expenses for DTE Electric’s Charging Forward program in 2024 and $5.1 million in 2025 and additional expenses supporting the company’s residential, business, and eFleet charger rebate programs. These investments will boost EV adoption, improve air quality, and support economic growth in the region.
As part of its ruling, the Commission adopted a default time-of-use rate for the residential class, supported by the analysis of CEO Witness William Kenworthy. Notably, the Commission directly adopted Mr. Kenworthy’s recommendations regarding addressing the negative impacts of time-of-use rates on vulnerable customers.
However, the Commission’s decisions fell short in addressing specific critical needs for scaling up local, distributed clean energy resources and non-conventional solutions like virtual power plants (VPPs) and demand response programs that collectively improve grid flexibility and reliability. The failure to transition pilot programs, such as microgrids, into full-scale initiatives that deliver meaningful grid value misses an opportunity to drive broader clean energy adoption and promote greater equity.
While CEOs appreciate the Commission’s recognition of equity in investment decisions, the order misses the opportunity to expand equity metrics like energy burden. It also falls short of requiring a comprehensive framework for evaluating how investments impact disadvantaged communities – critical steps to ensuring Michigan’s clean energy transition benefits everyone, particularly those most burdened by the current energy system.
“The Commission’s order authorizes important spending on DTE’s distribution grid to improve reliability, particularly in EJ communities. We applaud the Commission for its continued, specific attention to the needs of these communities. However, DTE and the Commission need to go further to incorporate distributed energy and new technologies into the DTE’s portfolio to best prepare for the future grid needs.”
“We appreciate the Commission’s Order upholding the company’s Charging Forward EV programs, which will boost EV adoption by ensuring greater access to EV charging where people live, work, and play. These programs will not only help to improve air quality and curb climate change but will also spur new economic development in the region and put downward pressure on utility rates.”
“We appreciate the Commission’s efforts to advance affordability and reliability in DTE’s operations. But DTE and the Commission must continue working to more deeply integrate energy justice principles into the company’s grid investments while also embracing innovative solutions such as batteries and microgrids that can cost-effectively enhance reliability and advance the clean energy transition.”
“The adoption of default residential time-of-use rates is the right thing for the energy system. Like the Commission has ordered them to do, DTE has the ability to identify the small number of vulnerable customers for whom this is not the best option. The CEO believes this is the right approach, and we’re pleased to see the Company implement it.”
The CEOs include The Ecology Center, Environmental Law & Policy Center, Union of Concerned Scientists, and Vote Solar.