Michigan's Public Service Commission approved a $74.52 million annual rate increase for DTE Gas Company, rejecting more than half of the utility's request. The utility had sought a net rate increase of $162.7 million to fund system upgrades and cover rising operational costs.
A typical residential customer using 75 hundred cubic feet of natural gas per month will see their monthly bill increase by $2.87, or 3.34 percent. An additional infrastructure recovery charge of 68 cents per month begins January 1, 2027.
The Commission approved a capital structure with a 9.8 percent return on equity, below the 10.25 percent DTE requested. The approved debt-to-equity ratio was 50-50, compared to DTE's proposal of 49.25 percent debt to 50.75 percent equity.
Regulators directed DTE to improve communication with customers about financial assistance programs for lower-income households. The Commission raised the Low-Income Assistance Credit from $40 to $58 monthly for eligible customers.
The Commission rejected DTE's $284.1 million request to replace its Taggart Compressor Station, citing insufficient evidence and inadequate discussion of alternative approaches. Regulators also disallowed $17.9 million in fleet costs, finding that the company had not justified early vehicle retirements.
Regulators ordered DTE to investigate concerns about potential racial disparities in utility shutoff rates and submit a corrective measures report by December 30, 2026. The Commission also directed the utility to conduct a comprehensive vehicle idling study and directed the company to file an annual report on its new market attachment program.