City of Ann Arbor Helps DTE Ratepayers Save Millions

The City of Ann Arbor’s intervention in the most recent DTE Electric Rate Case (Case No. U-21860) will help save DTE electric ratepayers hundreds of millions of dollars on their electricity bills. Filed on April 24, 2025, DTE Electric’s rate case application requested that, among other things, the Michigan Public Service Commission (MPSC), authorize an annual revenue increase of $574.1 million, which included a requested return on equity (ROE) of 10.75% (the amount of profit a utility is authorized to receive). Granting DTE’s application as filed would have resulted in an average residential rate increase of 11.1%. But thanks to the intervention of the City of Ann Arbor and over a dozen other stakeholders, the MPSC ordered DTE to maintain a 9.90% ROE and minimized the average residential rate increase to 4.1%.  

“We know households in Michigan are struggling with increasing utility costs at the same time they are trying to balance increasing costs for groceries, clothes, and household items. And Ann Arbor believes no one should have to choose between having electricity or feeding their family. This is why we regularly intervene in rate cases to ensure that our utilities only receive funding for needed investments, are responsible stewards of ratepayer dollars, and are moving towards healthier ways of generating energy here in Michigan,” said Dr. Missy Stults, Director of the Office of Sustainability and Innovations at the City.  

The City of Ann Arbor intervened in the DTE Electric Rate Case to ensure requested investments were reasonable, prudent, and aligned with a recent audit of DTE’s distribution system (Case No. U-21305). The City's intervention also focused on minimizing any rate increase, given the significant impact rate increases have on the City, its residents, and its businesses. 

While the City shared many arguments with other intervenors, it was the only party to argue and win the following:  

Ann Arbor’s intervention in this DTE Electric Rate Case builds on wins in previous cases. In DTE Electric’s last rate case they argued that they should be able to recover credits paid to customers for outages that were outside its control and Ann Arbor was the only party to recommend that DTE be required to provide evidence for each outage credit it sought to recover through rates (as opposed to DTE’s proposal that it recover a set percentage of the total amount of outage credits). The MPSC adopted the City’s recommendation, and as a result, DTE did not seek recovery of ANY outage credits in this most recent electric rate case – opposed to the likely hundreds of thousands (if not millions) of dollars that would have been included in rates every year had Ann Arbor not pushed for transparency.  

Ann Arbor’s intervention in U-21860 focused on the importance of preventative maintenance, transparency, and fiscal responsibility. With the news that DTE Electric plans to file another rate case next month, the City is gearing up to once again scrutinize all requested funding and oppose any that isn’t reasonable and prudent.  

“In Ann Arbor, climate action is an everything-all-at-once project. If it gets results, we do it. Fighting and winning at the MPSC isn’t flashy, but it works. It means real cost savings. It means holding utilities accountable. It reduces the impact of rising electric bills and forces our utilities to improve service and transparency. I’m so grateful for the skill and expertise of our Staff to get this work done and for the support of our residents, who know that we are working hard every day to save them money and move to a carbon free future,” said Ann Arbor Mayor Christopher Taylor.