Michigan regulators have approved a 2.28% increase in DTE gas rates. Here’s what this means for residents

The Michigan Public Utilities Commission has approved an average 2.28% increase in gas rates for gas company DTE customers.

DTE Gas Company, a subsidiary of DTE Energy, applied for a $266 million rate increase in January. DTE said the increase will fund infrastructure investments, provide funding to upgrade the natural gas transmission and distribution system, and cover maintenance costs.

The amount requested included $106 million that was already reflected in the rates of the surcharge already approved. This meant it would have been a $160 million increase for DTE customers.

But Michigan regulators approved a rate increase of $113,788,000, 57% less than the requested amount.

What does this increase mean for DTE customers?

The average resident using 100 cubic feet, or one hundred cubic feet, of natural gas will see their bills increase by $1.98 per month.

DTE customers will also see an increase of 66 cents each month due to the additional Infrastructure Recovery Mechanism (IRM) fee.

This surcharge will increase annually, and by January 1, 2029, customers will see an increase of $6.28.

“The commission has approved a lower authorized rate of return on common stock of 9.8% compared to the previously approved 9.9%, as well as a capital structure of 50% equity and 50% debt,” it said.