DTE Gas Company has notified the Michigan Public Service Commission that it plans to file a request for another natural gas rate increase in November, following a 3.3% increase approved this week.
In a letter to the MPSC, DTE Gas said its next rate case will be based on a projected 12-month period ending Sept. 30, 2028, using 2025 as the historical test year. The utility has not yet said how much additional revenue it will seek in the new case.
On Friday, Michigan Attorney General Dana Nessel criticized DTE's filing announcement, saying it came just hours after the commission approved the utility's latest rate increase.
"Not weeks, not days, but literally hours after securing a multi-million-dollar rate hike from the Commission, all while Michigan families struggle to keep their homes warm, DTE announced its intent to ask its customers for more," Nessel wrote in a statement.
In statement, Renee Tomina, president and COO of DTE Gas, said its announcement is the first step in a long process and does not immediately impact customers' bills.
"The notice is a required first step in a lengthy process under Michigan Public Service Commission rules, which call for utilities to provide at least 60 days' notice before filing a rate request — it does not change anyone's bill," she said. "When we file, we will outline the investments needed to continue modernizing the natural gas system and keep service safe and reliable for the 1.4 million customers we are privileged to serve. We understand that customers are facing higher costs in many parts of their lives, and we know we have a responsibility to carefully plan investments, manage our costs and keep bills as low as possible."
Nessel's comments came after the MPSC on Thursday approved a $74.52 million rate increase for DTE Gas.
The increase will result in a typical residential customer using 7,500 cubic feet of natural gas a month paying an additional $2.87, or 3.3%, in their monthly bill. The increase will be reflected in bills starting Oct. 1, officials said.
Customers also will see an additional 68-cent increase, or 0.77%, beginning Jan. 1, 2027, from an approved infrastructure recovery surcharge.
DTE Gas had sought an additional $162.7 million; the commission approved $74.52 million, about 54% less than the utility requested, according to the MPSC. The utility's total request was $237.5 million, but $74.8 million of that amount was for infrastructure costs already reflected in customer rates.
Tomina said the latest increase allows the utility to continue to modernize its natural gas system and serve its customers safely and reliably.
"At the same time, the order does not include the full level of support we requested for the investments we believe are needed to keep pace with critical system upgrades," she said. "We are reviewing the order closely and will continue to carefully manage our plans and costs while working to provide the safe, reliable service our customers depend on. We recognize that any change in a customer's bill matters, which is why we carefully plan our investments, manage costs and work to keep bills as low as possible. Even as we implement this work, DTE Gas bills are expected to remain below the average for cold-weather states in the Midwest and Northeast."
The commission also this week ordered DTE Gas to improve how it communicates with low-income customers about energy assistance programs and increased its Low-Income Assistance Credit from $40 to $58 for eligible customers.
The commission also raised the credit available to electric customers who experience lengthy or repeated power outages to $44 per day. The credit is automatically provided to eligible customers and is adjusted annually for inflation, officials said.
This article originally appeared on The Detroit News: DTE Gas to seek new rate increase after getting OK for 3.3% hike