MPSC Approves New Electric Rates to Continue DTE’s Reliability and Environmental Progress While Providing a Foundation for ...
May 08 2020 - 12:39PM
- Infrastructure investments will allow DTE to continue its
multi-year program that has so far led to a 30% improvement in
electric reliability across its service territory
- Average DTE monthly residential electric bills for customers
using 500 kilowatt hours of electricity are expected to increase by
approximately $4 and remain below the national average
- Amid COVID-19 pandemic, DTE has extended its service protection
period to June 1st and last week announced up to $40 million in
bill relief for its electric customers in June and July
DETROIT, May 8, 2020 – Following a ten-month regulatory
review process, the Michigan Public Service Commission (MPSC)
approved new electric rates for DTE Energy customers. The new
funding includes investments that will help DTE improve electric
reliability, support Michigan jobs, reduce carbon emissions and
provide needed upgrades at the Ludington Pumped Storage Power
Plant.
The new rates will take effect May 15, 2020. A residential
customer using 500 kilowatt hours of electricity per month is
expected to see an approximate $4 increase in their average monthly
bills. The average DTE monthly electric customer bill will continue
to be lower than the national average.
Amid the health and financial hardships that many Michiganders
are experiencing because of the COVID-19 pandemic, DTE is taking
several measures to assist its customers. The energy company has
extended its service protection period to June 1st and is providing
between $30 to $40 million in bill relief for its electric
customers during the months of June and July, typically peak summer
usage months.
To further help customers who may experience both short- and
long-term income difficulties because of the pandemic, DTE recently
launched a new Personalized Service Protection program. Customized
services that are being made available to eligible customers
include fee waivers, payment assistance and flexible long-term
repayment options.
Improving Electric Reliability
The infrastructure investments approved in this rate
decision will allow DTE to continue its multi-year program that
has so far led to a 30% improvement in
reliability across the energy company’s electric service
territory.
New rate funding will also go toward DTE’s tree trimming
program. Tree trimming operations are vital to maintaining and
improving electric reliability performance. The majority of DTE’s
outages are attributable to trees that fall on power lines. In most
areas in DTE’s service territory where trees are trimmed, customers
experience a 65% improvement in electric reliability.
Additionally, investments will support replacing aging equipment
and modernizing the grid. Infrastructure improvements will be made
leveraging proven technology solutions that will improve DTE’s
preparedness for catastrophic events, provide better response times
during outages as well as support the evolving way that customers
will use the grid in the future as electric vehicle (EV) use
increases.
Supporting Michigan Jobs
A key portion of the approved funding in this rate case will go
toward supporting key infrastructure projects throughout Michigan.
These projects will support jobs across the state and provide the
power needed as the economy rebounds.
Funding will go toward supporting jobs and construction costs at
DTE’s Blue Water Energy Center (BWEC) – an under construction,
state-of-the-art, natural gas combined-cycle plant that is
scheduled to be complete in 2022. The plant represents a nearly $1
billion investment in Michigan and construction jobs will peak at
about 520 full-time positions during construction and will provide
about 35 full-time positions once the plant is in operation.
DTE has spent $11.4 billion with Michigan-based businesses since
2010, creating or retaining 34,000 Michigan jobs. The energy
company has more than quadrupled its investment with in-state
businesses – today, nearly 65 cents of every dollar DTE spends goes
to a Michigan supplier.
Reducing Carbon Emissions
DTE Energy has already reduced its carbon emissions nearly 30%
since 2005. The company will further cut its carbon emissions 50%
by 2030 and 80% by 2040 as it pursues a long-term, ambitious goal
to achieve net zero carbon emissions in its electric utility by
2050.
To help meet its carbon emissions reduction commitments, DTE is
retiring three coal power plants in two years. These plants
represent about 20% of the generating capacity used to serve the
peak energy needs of DTE customers.
A portion of the order approved in the Commission’s decision
will support continued reliability and emissions reductions as DTE
transforms its generation resources through these plants
retirements.
Upgrading Storage Investments
Funding approved in the rate case decision will go toward
upgrading the Ludington Pumped Storage Power Plant, which DTE
co-owns with Consumers Energy. The plant is located on a 1,000-acre
site on Lake Michigan in Mason County and is the second-largest
pumped storage facility in the U.S. The plant generates
hydroelectric power and supports DTE’s renewable energy generation.
After plant upgrades are complete, Ludington will support enough
power for 1.65 million residential customers – an increase of
250,000 customers over current output.
About DTE Energy
DTE Energy (NYSE: DTE) is a Detroit-based diversified energy
company involved in the development and management of
energy-related businesses and services nationwide. Its operating
units include an electric company serving 2.2 million customers in
Southeast Michigan and a natural gas company serving 1.3 million
customers tin Michigan. The DTE portfolio includes energy
businesses focused on power and industrial projects; renewable
natural gas; natural gas pipelines, gathering and storage; and
energy marketing and trading. As an environmental leader, DTE
utility operations will reduce carbon dioxide and methane emissions
by more than 80% by 2040 to produce cleaner energy while
keeping it safe, reliable and affordable. DTE Electric aspires to
achieve net zero carbon by 2050. DTE is committed to serving
with its energy through volunteerism, education and employment
initiatives, philanthropy and economic progress. Information about
DTE is available
at dteenergy.com, empoweringmichigan.com, twitter.com/dte_energy and facebook.com.
Pete Ternes
DTE Energy
313.235.5555
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