DTE gas bills rise $2.87 a month Oct. 1 after regulators cut the hike to less than half

Starting Oct. 1, the typical DTE Gas household will pay about $2.87 more a month, the result of a rate case that state regulators trimmed to less than half of what the utility wanted.

The Michigan Public Service Commission approved a $74.52 million increase for DTE Gas, a 3.34% bump for residential customers. DTE had asked for $162.7 million net, so the approved figure came in at less than half the request.

The commission drew some lines of its own. It blocked $284.1 million in costs tied to a compressor station project. It directed DTE to analyze racial disparities in service shutoffs and to expand its long-term planning to account for reduced reliance on gas. A separate infrastructure surcharge of 68 cents a month begins in 2027.

Hours after the vote, DTE announced its intent to file for another gas increase.

That timing lit up Lansing. "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," Attorney General Dana Nessel said. "This system is fundamentally broken, and Michigan ratepayers deserve better," she added.

DTE calls the notice procedural. "The notice is a required first step in a lengthy process under Michigan Public Service Commission rules, which call for utilities to provide at least 60 days' notice before filing a rate request," said DTE Gas President and COO Renee Tomina.

DTE Gas serves about 1.3 million customers. Nessel's office says it has helped save consumers more than $4.6 billion in proposed rate hikes, and this case fit the pattern by knocking down more than half of the ask.

What to watch: DTE's next gas filing is expected around mid-November, which opens a fresh case where residents and the Attorney General can weigh in.