DTE Energy reduces customers' bills by passing on $300 million savings in fuel and transportation costs

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DTE Energy Announces $300 Million Annual Reduction in Power Supply Cost Recovery Mechanism, Leading to Lower Electric Bills for Customers

Positive

• Reduction in Power Supply Cost Recovery mechanism by $300 million annually
• Average electric bills for residential customers to decrease by approximately $5 per month
• DTE Energy named a Top Five energy company in the nation for energy efficiency savings by the American Council for an Energy-Efficient Economy (ACEEE)

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• None.

Customers will see this reduction on electric bills beginning December 1

Detroit, Nov. 17, 2023 (GLOBE NEWSWIRE) -- DETROIT, November 17, 2023 — DTE Energy’s customers will soon see a decrease in their electric bills. DTE will be reducing the Power Supply Cost Recovery mechanism (PSCR), which represents the actual cost of the fuel and other sources the company uses to produce electricity, by approximately $300 million annually. This reduction will go into effect December 1 and will reduce average electric bills for residential customers by approximately $5 per month*.

“This is good news for our customers,” said Matt Paul, president and chief operating officer, DTE Electric. “We strive to provide our customers with safe, reliable and affordable energy, and this operating savings will give them some relief on their bills.”  

The PSCR line item on customers’ bills reflects a portion of the costs of the fuel and other sources DTE uses to produce, purchase and transport electricity, which are beginning to stabilize.  DTE reviews PSCR annually and adjusts customer bills to reflect these costs accordingly - customers pay what the company pays. When these costs decrease (or increase), DTE passes this on to its customers.

This reduction will automatically post to customer bills beginning December 1, 2023.  

Earlier this year, DTE Energy filed a request with the MPSC to raise rates in order to continue investing to improve electric reliability and to support the transition toward cleaner energy for its 2.3 million electric customers – a decision on this request is expected by Dec 10, 2023.

DTE is leading the way in energy savings for customers, having recently been named a Top Five energy company in the nation for energy efficiency savings by the American Council for an Energy-Efficient Economy (ACEEE).

DTE offers over 20 energy efficiency programs, rebates and offerings to residential and business customers and encourages customers to save even more energy and money by following these winter energy efficiency tips and information at dteenergy.com/heatingseason: 

• Setting your thermostat to 68° Fahrenheit during winter months and turning it down a few degrees while asleep can help you save up to 10% annually on energy costs.
• Keep your furnace working at peak efficiency by regularly changing the air filters, cleaning the vents and getting routine tune-ups. If it’s older, consider a modern, high-efficiency model and save with rebates.
• You can save up to 10% on your annual energy bills by sealing air leaks and adding insulation. Install caulking and weatherstripping around doors and windows. Allow warm sunlight in south-facing windows during the day and cover them at night to reduce drafts.
• LED light bulbs are more efficient, durable and last up to 15 times longer than incandescent bulbs. They also use up to 90% less energy while providing the same amount of light.

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 includes energy businesses focused on custom energy solutions, renewable energy generation and energy marketing and trading. Through our commitment to cleaner energy, DTE Electric plans to reduce CO2 emissions by 90% and DTE Gas will plan to reduce methane emissions 80% by 2040 to produce cleaner energy while keeping it safe, reliable and affordable. DTE Electric and Gas aspire to achieve net zero carbon 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 the Power Supply Cost Recovery mechanism (PSCR) reduction by DTE Energy?

DTE Energy is reducing the PSCR by approximately $300 million annually, leading to lower electric bills for customers.

When will the reduction in electric bills go into effect for DTE Energy customers?

The reduction will go into effect on December 1, 2023, automatically posting to customer bills.

What energy efficiency tips does DTE Energy provide to its customers?

DTE Energy encourages customers to save energy and money by setting the thermostat to 68° Fahrenheit, keeping the furnace working at peak efficiency, sealing air leaks, adding insulation, and using LED light bulbs.

What did DTE Energy file a request for with the MPSC?

DTE Energy filed a request with the MPSC to raise rates in order to continue investing to improve electric reliability and support the transition toward cleaner energy for its 2.3 million electric customers.

What recognition did DTE Energy recently receive in the energy industry?

DTE Energy was named a Top Five energy company in the nation for energy efficiency savings by the American Council for an Energy-Efficient Economy (ACEEE).