DTE Energy secures $242 million electric rate increase

February 19, 2026

Michigan regulators have approved a $242. 4 million electric rate increase for DTE Energy, which amounts to roughly half of what the utility originally requested and will raise residential bills by approximately 4. 1 percent starting in early March.

Who is affected

DTE Energy residential customers in Southeast Michigan
DTE Energy shareholders
Michigan Attorney General Dana Nessel
Citizens Utility Board of Michigan
Michigan Public Service Commission (MPSC)

What action is being taken

The Michigan Public Service Commission is implementing a $242.4 million electric rate hike for DTE Energy
Customer bills are rising by $4.93 per month starting March 5
DTE is making targeted investments to improve electric reliability and strengthen the grid
The MPSC is maintaining a five-year tree trimming cycle (denied DTE's request to lengthen it)

Why it matters

This rate increase significantly impacts affordability for DTE customers who are experiencing their second major rate hike within three months, raising concerns about the financial burden on residential consumers. The approved 9.9% return on equity exceeds the national utility industry average, which consumer advocates argue incentivizes the company to prioritize capital-intensive projects that generate higher shareholder returns rather than operational improvements that would directly enhance service reliability. The decision reflects the ongoing tension between utility profitability, infrastructure investment needs, and customer protection in the transition away from fossil fuels.

What's next

Infrastructure Recovery Mechanism funding of $348.8 million approved for 2026 and $282.5 million for 2027 to support grid investments
Conversion of Belle River Power plant from coal to natural gas
Completion of the Trenton Channel Battery Energy Storage System
Decommissioning of the mothballed River Rouge, St. Clair, and Trenton Channel power plants

Read full article from source: bridgedetroit.com