DTE Gas Seeks Additional Rate Increase After Getting Ok For $74M Hike

DTE Gas Co. (a natural gas subsidiary of DTE Energy) is planning to ask for a gas increase just after state officials approved a $74.52 million hike.

The utility did not list the exact amount they are seeking, but noted it will be based on a projected 12-month period ending Sept. 30, 2028, using 2025 as the historical test year. They plan to file the notice in mid-November.

COO of DTE Gas Renee Tomina said the notice is the first step in a lengthy process and does not immediately affect customers bills.

"When we file, we will outline the investments needed to continue modernizing the natural gas system and keep service safe and reliable for the 1.4 million customers we are privileged to serve," Tomina said. "We understand that customers are facing higher costs in many parts of their lives, and we know we have a responsibility to carefully plan investments, manage our costs and keep bills as low as possible."

The plan comes as the Michigan Public Service Commission approved a net rate increase of $74.52 million on Thursday.

Officials said the utility originally sought a total rate increase of $237.5 million, which included $74.8 million in an infrastructure recovery mechanism charge already reflected in rates, for a net rate increase request of $162.7 million.

A typical residential customer using 75 ccf (hundred cubic feet) of natural gas per month will see an increase of $2.87, or 3.34 percent, in their monthly bill, officials said.

Due to the approved Infrastructure Recovery Mechanism (IRM) surcharge, customers will see an increase of 68 cents, or 0.77 percent, starting January 1, 2027, officials said.

Additionally, officials ordered the utility to improve how it communicates with customers about existing energy assistance programs to better help lower-income customers access financial assistance and other programs.

They also forced the utility to raise its low-income credit to $58 from $40, roughly covering 70 percent of the average customer's bill.

Tomina said the increase allows the company to continue important work to modernize the natural gas system. However, she said it does not reach the full level of support the utility needs to keep pace with critical system upgrades.

"We recognize that any change in a customer's bill matters, which is why we carefully plan our investments, manage costs and work to keep bills as low as possible," Tomina said. "Even as we implement this work, DTE Gas bills are expected to remain below the average for cold-weather states in the Midwest and Northeast."

DTE Gas Co.'s plan to seek an additional hike drew swift backlash from Michigan leaders.

"Not weeks, not days, but literally hours after securing a multi-million-dollar rate hike from the Commission, all while Michigan families struggle to keep their homes warm, DTE announced its intent to ask its customers for more," Michigan Attorney General Dana Nessel said. "This system is fundamentally broken, and Michigan ratepayers deserve better. They deserve better from the regulated monopolies raking in profits off of their backs, better from a commission that consistently and predictably splits the difference between corporate greed and affordable rates, and better from elected officials who have chosen to look the other way."

Not only does the utility's latest request come on the heels of the $74.8 million approval, but they also asked the commission for a $474 million hike in April.

If approved, officials said customers could see a 10 percent increase in their monthly bills by March 2027.

Oakland County officials pushed back.

"A 10 percent rate increase is unaffordable for Oakland County’s working families," Oakland County Board Chair David T. Woodward (D-Royal Oak) said. "We will fight for lower rates and use every tool in our power to help our residents."

Officials in Wayne and Macomb counties are also intervening in the case. Michigan officials are expected to rule on the case by mid-2027.

DTE sells natural gas to 1.3 million customers across the state and electricity to roughly 2.3 million customers in southeastern Michigan.