Jun 12, 2025
Residents who recently attended a Michigan Public Service Commission (MPSC) meeting have one unified message for DTE Energy: enough with the rate hikes.
"People are fed up," Donavan McKinney, a Michigan state representative, shared with WXYZ Detroit. “They cannot afford more rate increases. People are struggling as is.”
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Residents have expressed frustration over years of electricity rate hikes and are pushing back on DTE's newest request: a 2026 rate increase that’s expected to produce $574 million in revenue.
If approved, the rate increase would be the fourth major hike in five years. The Detroit Free Press estimates the rake hike would increase consumer bills by $13.50 per month.
Residents denounce never-ending rate increases
At the meeting, community members voiced their frustration directly to the MPSC, questioning why rates continue to rise year after year while DTE Energy’s executives receive large salaries and bonuses.
“If you're saying you need the increase for infrastructure and systems, why are your board members taking home so much profit annually?” one resident asked.
The most recent increase took effect in January 2025, generating $217 million in additional revenue for DTE. Residents say it’s just the latest in a decade-long pattern of steady increases.
Commission representatives explained that part of their job is to determine what constitutes a "reasonable profit" for utility shareholders. The current authorized return on equity for DTE stands at 9.9%, while the total return ranges from 5% to 6%.
When WXYZ reporter Meghan Daniels asked whether those numbers could be reduced in light of the financial strain on families, a commission spokesperson said DTE is trying to balance consumer impact with the utility company's needs.
"The requirement we have under court precedent is we need to balance the interest of customers with the interest of the utility being able to access the capital that they need to reinvest in their business," the representative said.
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Still, many residents weren’t satisfied.
"These rate increases are really choking our people," Roslyn Ogburn, a partnership coordinator for the Michigan League of Conservation Voters, shared with the Detroit Free Press. "We're telling the Michigan Public Service Commission to stop the rate increase and come up with better solutions. Do not put another burden on the back of the people."
DTE has defended its performance in a statement published by WXYZ Detroit. The company claims that strategic grid investments led to a 70% improvement in power reliability from 2023 to 2024. The company also says it’s working to provide “cleaner and more reliable energy” while keeping bills below the national average.
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What options do residents have?
For many in the Detroit area, DTE is the default — and often only — electricity utility provider. Michigan operates under a regulated monopoly model, meaning most residents have limited or no ability to switch providers for standard electricity service. While the state does have an Electric Customer Choice program, it’s capped and currently unavailable to most residential customers due to capacity limits.
That leaves residents with two broad paths: managing rising energy costs or pushing for change. If you find yourself in a similar situation and switching providers in not an option, here are some ways to manage rising energy costs:
- Reduce usage where possible: Switch to LED light bulbs, seal your windows and doors, and unplug unused electronics. It also helps to reduce your AC and heating usage when possible.
- Invest in efficient renewable energy: While the upfront cost can be high, solar panels, smart thermostats and efficient appliances can help lower long-term energy costs. Check for rebates or local assistance programs.
- Restructure your budget: If your energy bill has become a larger monthly expense, rebalancing your budget might be necessary. Look for ways to cut unnecessary spending.
- Apply for assistance: DTE offers payment assistance and flexible plans for qualifying customers. If you live in Michigan, you can apply for help through programs like the Low Income Home Energy Assistance Program or the Michigan Energy Assistance Program.
- Make your voice heard: Michigan residents can file formal complaints through the MPSC, but Americans living in another state can attend public meetings or contact their state representatives.
Whether change comes through new regulation, public pressure or alternative energy investments, many Michiganders say the current path is unsustainable.
"[Residents] cannot take another rate increase," said McKinney. “It will literally bankrupt a lot of these families. They're already playing catch-up.”
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
