LANSING – The Michigan Public Service Commission and DTE Electric Company reached an agreement to allow the utility to hike its electric rates by $238.2 million annually – resulting in an increase of $8.22 monthly for residential customers using 500 kilowatt-hours of electricity a month. The new rates are effective Dec. 17.
The increase is 36 percent below what the utility had initially requested (case U-17767), the commission was quick to point out in a statement about the rate hike (the company originally sought a rate increase of $370 million).
“Customers will benefit from improvements in the reliability and safety of DTE Electric Company’s electric distribution system and the acquisition of two natural gas-fired plants to generate electricity,” PSC Chair John Quackenbush said in a statement. “The rates approved today are 36 percent below what the utility requested and will result in a more reliable system, a cleaner environment and rates that reflect the ongoing effort toward affordability.”
Commercial customers will also see a rate increase of 3.4 percent as a result of the agreement, and industrial customers will see a rate decrease of 2.4 percent.
The new rates are effective December 17, and the total amount approved on Friday represents an increase of 5.3 percent over the rates set in its previous electric rate case (case U-16472).
INDIANA MICHIGAN POWER COMPANY: The PSC also approved a settlement agreement authorizing Indiana Michigan Power Company to implement its 2016-17 energy optimization plan that will result in an increase of 5 cents on the monthly bills of residential customers using 500 kilowatt-hours of electricity a month beginning with the January 2016 billing month (case U-17773).
The PSC and the utility also approved a settlement reconciling the company’s 2014 renewable energy plan surcharge revenues, as well as to amend its plan and revise the charges. That will add another 43 cents on the monthly bills of residential customers effective with the January 2016 billing cycle (case U-17794 and U-17805).
SEMCO ENERGY COMPANY: SEMCO Energy Gas Company will implement its 2016-17 energy optimization plan effective January 1, 2016, which will result in residential customers using 100 ccf of natural gas a month seeing an increase of 16 cents on their monthly bills (case U-17790).
MICHIGAN GAS UTILITIES CORPORATION: The utility has been authorized to increase its base rates by $3.4 million annually resulting in an increase of $1.72 on the monthly bills of residential customers using 100 ccf of natural gas, effective January 1, 2016 (case U-17880).
PRESQUE ISLE ELECTRIC & GAS CO-OP: The company and the PSC approved an agreement to revise its monthly regulatory cost charge resulting in a decrease of 80 cents on the monthly bills of residential customers in the Hillman Village and Allis Township effective with the January billing month (case U-17848).
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