DTE Energy proposes investment to improve reliability, modernize grid for the future and continue clean energy journey

Rhea-AI Summary

DTE Energy proposes a $388 million investment to modernize Michigan's energy grid and enhance electric generation systems to meet 21st-century demands. This initiative, the Grid Modernization/CleanVision plan, includes a review process with the Michigan Public Service Commission aimed at securing the first rate increase in two-and-a-half years, potentially raising residential bills by an average of $10 per month. The investment focuses on infrastructure improvement, reliability, and a commitment to cleaner energy, while allowing for public input over 10 months.

Positive

• Proposed $388 million investment to modernize energy grid and improve reliability.
• Commitment to cleaner energy and infrastructure modernization.
• Average residential bill increase of only $10 per month, which is below the industry average.

Negative

• Proposed rate increase could burden customers with higher bills, although it is modest.

•Commits investments to update energy grid and electric generation system for 21st century demands •Launches 10-month review process with Michigan Public Service Commission and other stakeholders for first rate increase in two-and-a-half years•Proposed investment could translate up to $10 increase/month on average residential customer bill

Detroit, Jan. 19, 2022 (GLOBE NEWSWIRE) -- DETROIT, Jan. 19, 2022 — DTE Energy, Michigan’s largest energy company, this week is proposing a $388 million investment in the state’s energy grid and electric storage and generation system to prepare for 21st century demands posed by growing electrification needs, climate change, and the fast-evolving preferences of consumers and businesses. To fund the next steps in improving reliability, building a smarter grid of the future and producing more clean energy, DTE Energy is seeking Michigan Public Service Commission (MPSC) approval for its first rate increase in two-and-a-half years. With the proposed investment, based on average residential customer electricity use, the most a bill could increase is approximately $10 per month.  

In the proposal, DTE is committing 100% of the investments to improving its service, including modernizing infrastructure and producing cleaner energy. The filing – DTE’s Grid Modernization/ CleanVision plan – begins a 10-month process under which the request is thoroughly vetted by the MPSC with public input. DTE’s plan for grid modernization includes continuation of the multi-year tree trimming surge program; strategic infrastructure investments in substations, poles, wires, transformers and other assets to modernize the grid and improve reliability; and smart technologies to help detect and prevent large-scale interruptions. 

DTE remains committed to surging its tree trimming efforts, which directly correlates to improved reliability.  In 2021 the company invested an incremental $70 million in tree trimming to help combat extreme weather-related power outages; recently it committed another $20 million to help accelerate its tree trimming efforts.  This investment of company funds has no impact on customer bills.

The company’s CleanVision plan includes the start-up of the Blue Water Energy Center, the retirement of the St. Clair and Trenton Channel Power Plants, and battery and hydrogen storage pilot programs. 

The filing follows a year marked with increasingly severe and frequent weather systems that have impacted the electric grid – and residents and business – across the state of Michigan. While the company consistently makes investments to rebuild infrastructure and improve reliability, DTE’s proposed investment will directly support improvements to the electric grid with new equipment and technology to make the system more resilient. The filing also will allow the company to continue its CleanVision journey to net zero emissions.

“DTE Energy and our customers imagine a future for Michigan when Michigander’s lives and livelihoods are enhanced by their connection to new technologies powered by a strong and reliable system; when we’re powering our electric grid with clean energy sources; and when the state’s energy mix makes Michigan a beacon for economic development,” said Trevor Lauer,  president and chief operating officer of DTE’s electric company. “That bright future is within our reach if we invest in a modernized grid of the future powered by cleaner energy generation.”

The final impact on customer bills will not be determined until the MPSC makes its decision later this year. DTE’s average monthly residential electric bill is below the industry average, and the company is committed to continuing to keep bills affordable for customers. The rate-making process generally lasts 10 months, so any new rate would not take effect until November 2022.

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 2.3 million customers in Southeast Michigan and a natural gas company serving 1.3 million customers in Michigan. The DTE portfolio also includes non-utility businesses focused on industrial energy services, renewable natural gas, 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 and Gas aspire to achieve net zero carbon and greenhouse gas emissions 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/dteenergy. 

FAQ

What is DTE Energy proposing in their recent announcement?

DTE Energy is proposing a $388 million investment to modernize Michigan's energy grid and electric generation systems.

How much could DTE Energy's proposed investment raise residential bills?

The proposed investment could raise average residential customer bills by approximately $10 per month.

When was the last rate increase for DTE Energy?

DTE Energy's proposed rate increase will be the first in two-and-a-half years.

What is the purpose of DTE Energy's Grid Modernization/CleanVision plan?

The plan aims to enhance the reliability of the energy grid and support cleaner energy generation.

How long will the review process for DTE Energy's proposed rate increase last?

The review process will last approximately 10 months.