Great Lakes Wire

Michigan Attorney General Dana Nessel successfully argued before the Michigan Public Service Commission (MPSC) to disallow $33,774,728 in cost recovery sought by DTE Electric. The MPSC issued an order last week following Nessel's arguments.

Regulated utilities annually file cost recovery cases with the MPSC to recover costs incurred in purchasing power for Michigan residents. These cases are separate from rate increase requests. Utility corporations often try to pass on increased costs that benefit shareholders or result from poor management of outages and power generation planning. In this case, the MPSC determined that DTE improperly attempted to charge customers over $30 million for unsupported costs related to power plant outages. The order was issued on February 27th.

"Regulated utility corporations often seek permission to recover certain increased costs they incur to deliver Michiganders’ energy supply but, in all instances, they must show these expenses were in the interest of their customers and procured at competitive costs," said Nessel. "DTE failed to make the mark here, and not for the first time. My office will continue to argue before the MPSC to keep unsupported and wasteful cash outlays made to boost corporate profits or for any other improper purpose off Michigan ratepayers’ bills."

On the same day, another MPSC order disallowed $7,537,566 in unsupported costs requested by DTM Michigan Lateral Company, a pipeline owner whose main customer is DTE Gas. This intervention led to a full examination of issues before a judge, preventing more than $7.5 million from being billed to DTE Gas customers.

The two orders combined save Michigan ratepayers a total of $41,312,294.

DTE provides natural gas service to 1.3 million customers statewide and electricity service to approximately 2.3 million customers in Southeast Michigan. Since taking office, Attorney General Nessel has helped save nearly $3.7 billion for Michigan ratepayers.