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DTE’s $574 million rate hike proposal sparks public fury

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  • A rally was held ahead of a Michigan Public Service Commission meeting in Detroit on Thursday, May 29, to oppose DTE Energy’s $547 million rate hike request.
  • The commission meeting aimed to improve public input, but many attendees made it a priority to oppose the rate increase.
  • Attendees called for greater transparency, better complaint handling, and urged the commission to prioritize residents over utility profits.

Residents, advocacy groups and a state lawmaker rallied outside a Michigan Public Service Commission meeting in Detroit on Thursday, May 29, protesting yet another DTE Energy request to raise electricity rates for the fourth time in five years.

The rally, held at 5 p.m. outside Cadillac Place on West Grand Boulevard, preceded a 6-8 p.m. town hall-style meeting hosted by the commission. Inside, state regulators gathered feedback from the public on how to make proceedings more accessible and interactive, though many attendees came with a different priority: stopping the rate hike.

Proposed rate hike would raise bills by $13.50 a month

The commission is currently reviewing DTE’s proposal to raise rates by $574 million, more than double what the company was granted just months ago. If approved, the average customer’s monthly bill would increase by $13.50.

“These rate increases are really choking our people,” said Roslyn Ogburn, a fourth-generation Detroiter and partnership coordinator for the Michigan League of Conservation Voters. “We’re telling the Michigan Public Service Commission to stop the rate increase and come up with better solutions. Do not put another burden on the back of the people.”

Ogburn, a mother of five who lives in Detroit’s Warrendale neighborhood, said families like hers are being forced to choose between utilities and basic needs like groceries or medication.

“People are trying to figure out: Can I pay for medication and food, or do I need to pay my utility bills to avoid shutoffs?” she said. “(Utility companies) are not putting people first. They’re putting profit first.”

The rally was organized by the Michigan League of Conservation Voters, Clean Water Action, Detroit Action, Michigan United and Voters Not Politicians. Attendees carried signs that read “Rate hikes? For what?” and “Our energy bills are too damn high.”

They chanted “Enough is enough!” and “We will take back our power” before entering the meeting, where public frustration was met with listening sessions led by the three commissioners — Chair Dan Scripps, Katherine Peretick and Alessandra Carreon — along with representatives from the attorney general’s office and the Utility Consumer Participation Board.

The commissioners are appointed by the governor to staggered terms.

Residents call for better complaint handling and transparency

Inside the town hall, attendees were split into groups with commissioners and state staff to voice concerns. In addition to opposition to the rate increase, many questioned how complaints are handled and called for greater transparency.

Suggestions included monthly public reporting of complaints and resolutions, clearer summaries of commission decisions written at an eighth-grade reading level, and a more visible process for residents to provide formal input.

Public anger over rising rates has drawn attention from state lawmakers. In February 2024, state Rep. Dylan Wegela, D-Garden City, introduced legislation to curb political influence by Michigan’s largest utilities. Bills 5520 and 5521 would bar state-regulated utilities like DTE and Consumers Energy — and their affiliated nonprofits — from donating to political committees or nonprofits tied to state officials.

“We want the Legislature to stop taking money from DTE because they’re having an outsized influence on the process; they’re drowning out the voice of the people,” said Eric Shelley, an organizer with Michigan United.

McKinney: ‘Another rate hike would bankrupt families’

State Rep. Donavan McKinney, D-Detroit, who is also running for Congress, addressed the crowd at the rally. He called the proposed hike devastating for his constituents, many of whom already struggle to pay basic bills.

“I represent the poorest house district in the state of Michigan; $14,000 is the median income of my district. … You know what I hear every day from my residents? Kitchen table issues,” McKinney told the Free Press. “They cannot take another rate increase. It will literally bankrupt a lot of these families. They’re already playing catch-up.”

He noted that while he was en route to the rally, over 1,000 households in his district were without power.

Why do DTE and Consumers keep asking for rate hikes?

In early 2025, the Michigan Public Service Commission approved significantly reduced electric rate hikes for the state’s two major utilities: DTE Energy received $217.4 million of its $456.4 million request in January, and Consumers Energy was granted $153.8 million of its $325 million request in March.

Utilities can request rate increases annually. Rate cases take about 10 months, during which the public can submit comments.

“When they file the next rate case, what they are saying is that the rates that they collect from customers don’t meet the needs for investment in the system,” Scripps said. “Then they have to justify line by line why that is.”

A core responsibility of the commission is to evaluate utilities’ cost of capital and ensure they can secure the resources needed to invest in their systems, he added.

A third-party audit, released in 2024 by the commission, found that DTE Energy and Consumers Energy were slow to restore power after major storms, with DTE averaging 3.5 days and Consumers 2.5 days. It also found DTE’s tree trimming covered only 70% of recommended areas, and 58% of its distribution poles were over 40 years old.

The audit also raised concerns that both utilities prioritized capital investments — which yield nearly 10% returns for shareholders — over basic maintenance. Critics, including Attorney General Dana Nessel, said the approach puts profits ahead of reliability.

Striking a balance between costs, profits and public input

Scripps said the commission is trying to strike a balance between affordability and reliability while improving public participation in its decision-making.

“It’s not as straightforward as this is in the interest of customers or this is in the interest of shareholders,” Scripps said. “We try to strike a balance that allows for long-term investment while limiting rate increases to what’s actually necessary.”

He added that comments at public meetings don’t carry the same legal weight as formal evidence in rate cases, but the commission is looking for ways to better integrate public feedback into the evidentiary process.

“In these rate cases, we act in a quasi-judicial role,” he said. “We’re figuring out how to make sure the comments we hear can be reflected in the record — to ensure the public voice is heard early enough to make a difference.”

The Free Press has scrutinized the commission in separate investigations. One report in late 2023 looked into whether the commission and the utilities it regulates were too cozy. Last year, another reported on how the agency handled consumer complaints.

“We feel like utility companies are in bed with the Michigan Public Service Commission,” Ogburn said.

She also criticized DTE for what she described as a lack of investment in renewable energy.

In response to concerns about clean energy, Scripps told town hall attendees Michigan has phased out most coal plants and is expanding solar and wind power while emphasizing energy efficiency. Those efforts, he added, have helped avoid the need to build two full-size gas plants and saved ratepayers money over the long term.

Still, for many Michiganders, the issue remains urgent and personal amid rising costs of living.

“They ask for more and more money, but as a result, we get worse and worse service, and still pay the highest rates in the Midwest,” Shelley said.

Nour Rahal is a trending and breaking news reporter. Email her: nrahal@freepress.com. Follow her on Twitter @nrahal1.

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