Michigan Senate panel advances bill scraping third-grade reading law

DTE gas bills to drop slightly, while electric bills will rise

Breana Noble
The Detroit News

DTE Gas Co. customers will see their bills lowered, while DTE Electric Co. customers will see theirs increase in the coming months

The Michigan Public Service Commission Tuesday approved a settlement agreement with DTE Electric over the costs associated with transferring former City of Detroit Public Lighting Department customers to DTE in 2018.

DTE residential customers who use 500 kilowatt-hours of electricity monthly will pay a 52-cent surcharge, while those who use 10,000 cubic feet of natural gas a month will get a 58-cent credit.

DTE will add a surcharge 0.103 cents per kilowatt-hour to bills in October, November and December. For residential customers who use 500 kilowatt-hours of electricity, they will pay 52 cents on each bill.

Meanwhile, DTE Gas will return $333 million to natural gas customers through credits as a result of the lowered federal corporate tax rate.

The gas credits will return $12.7 million annually to customers starting in September. A residential ratepayer who uses 10,000 cubic feet of natural gas a month would receive a 58-cent monthly credit.

This is the third round of adjustments for the Detroit-based utility following a decrease in the corporate tax rate to 21% from 35% enacted in December 2017. The credits are based on tax savings calculated by DTE and will be in effect until the utility implements a new natural gas rate.