Residents blast DTE over proposed rate increase

(This story was updated to correct a misspelling.)

Fed up homeowners and activists blasted DTE Energy and the Michigan Public Services Commission alike at a public hearing Wednesday evening over the utility's request for a 10% rate increase.

One speaker called the company "a bully that thinks they are invincible." Another urged the commissioners to "have some backbone" and hold down rates.

"They're trying to use this rate increase to pay for private jets for their executives," said Francesca Stephenson, 36, of Detroit. "This rate increase request is corporate greed, plain and simple."

Several speakers spoke out against for-profit utility providers in general. They argued that electricity, like water, is a human right and said providers should be publicly owned.

But others rose to defend the company and the requested increase, saying it's needed to improve the grid and reduce power outages. Some of them were local business owners, who say they've been able to provide jobs and grow because of their business with DTE. Union leaders representing DTE workers also spoke in favor of the rate increase.

Jason Kappan spoke in support of the increase, saying his family-owned tree trimming service had six employees when it started working with DTE 30 years ago.

“Now we're at almost at 300 employees,” he said. “Every one of those 300 employees are everybody in this room's neighbor, your friend, your family, and they support the local communities.”

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About 200 people attended the hearing at Mumford High School on Detroit's west side. Protesters gathered near the entrance to the school holding signs with messages like "Pay up 4 power outages" and "MPSC you work for me, not DTE."

The hearing grew raucous at times with the crowd shouting down some speakers.

The three commissioners didn't respond to the crowd. They sat on stage at a table, taking notes at what was said. Three Michigan State Police troopers stood guard just off stage.

Commission Chair Dan Scripps noted beforehand that the commission serves in a quasi-judicial role, examining evidence submitted in a formal process by lawyers and others representing the company, the state and other interested parties. He said the public hearing was an important part of the process, but ultimately, the formal evidence carries more weight.

"Unlike the evidence that's part of the record, we're not able to actually base a decision based on comments," Scripps said. "They're not subject to cross examination and the other sort of rigors, but it gives a sense of where the community is, and I think that's valuable as well."

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Under the process, the commissioners aren't allowed to comment on the case while it's pending.

Earlier this year, DTE spokesperson Jill Wilmot said the jet expenses cover limited air travel for business-appropriate needs, “including industry association meetings, which provide best practices and information sharing to run best-in-class energy companies, as well as meetings necessary to attract investment dollars into Michigan.”

The rate increase that DTE is seeking would fund $456.4 million in grid upgrades. The company wants to install 10,000 smart devices in the grid in coming years that can more quickly pinpoint outages and reroute power around them to reduce the number of customers in the dark.

The company isn't allowed to comment directly on pending rate increase cases either, but reiterated its commitment to improving reliability and holding down costs for consumers.

"DTE has invested billions of dollars into building the grid of the future — one that will deliver on our commitment of reducing power outages by 30% and cutting outage duration in half in the next five years," the statement said. "As we’ve invested, our focus has been and remains on affordability for our customers, keeping bills below the national average and any increase below the rate of inflation."

Michigan Attorney General Dana Nessel recommends a 2.5% increase, suggesting tree trimming and other vegetation management.

“A deep dive into DTE’s latest electric rate case reveals a disturbing pattern of exaggerated projections and unsubstantiated projects that clearly prioritize corporate interests over customer benefits,” Nessel said.

DTE stock is up about 11% this year and the company told investors last month that it is targeting earnings growth of 6%-8% through 2028.

The MPSC took no action on the request at the hearing, which is designed to gather public input before a decision is made. DTE filed its application for the increase March 28 and under the law, the Commission has 10 months from then to reach a decision.

Khalil AlHajal contributed to this report.

Contact John Wisely: [email protected]. On X @jwisely

This article originally appeared on Detroit Free Press: Residents blast DTE over proposed rate increase