The Michigan Public Service Commission has granted a rate increase for DTE Gas. But that’s not the only order it has given the utility.
Under case U-21291, the commission is requiring DTE Gas to take other steps toward reducing emissions and costs.
One of those steps includes incorporating the state’s emissions and electrification goals in its future plans. That’s a first, said Daniel Abrams, an attorney with the Environmental Law and Policy Center.
“This is the first case in Michigan where the commission has weighed in to tell a gas utility it needs to start thinking through the impacts of electrification and the state's emission reduction goals,” he said.
As more households turn to other sources of heat, natural gas demand will likely decrease. The gas utility needs to plan for that future, Abrams said.
The commission is also requiring DTE Gas to use Michigan’s environmental justice screening tool when making those plans. That will help the company meet those communities’ needs, Abrams said.
“As DTE is considering how it invests, where it invests; what type of programs it operates for its residential customers, it's considering ways to better engage and better target spending in low income and disadvantaged communities,” he said.
The order also includes a provision that DTE Gas must continue piloting demand response programs. Those are optional programs that reward customers for lowering gas use during peak demand times. That helps customers save money and reduce emissions.
Residential customers can expect about a $2 increase on their monthly bills, depending on how much gas they use. It’s the second rate increase the commission has approved for DTE Gas in four years. But it's a 57% reduction from what DTE Gas originally requested in January.
The rate increase may not cover the upgrades DTE Gas intends to make in the coming year, the utility said in a statement.
“We're currently assessing the rate order’s impact on the progress of our work, including our gas main renewal program,” the statement said. The attorney general’s office argued that the utility was asking for too much money when it intervened. It’s a similar situation to DTE Energy’s rate hike request for its electric utility.
Safety continues to be a priority for the utility, DTE said. The law center wants to work with DTE to balance emissions reduction and safety, Abrams said.
“We are excited to partner with DTE in finding new and different ways to maintain the [natural gas] system,” he said. “These sort of global or national trends [of reduced natural gas use] are going to change the way they're going to have to operate going forward.”
Editor's note: DTE is among Michigan Public's corporate sponsors.
