Michigan heating bills expected to rise this winter. Where to get help

LANSING – Some Michigan residents are bracing for higher heating costs as winter approaches. 

While the Great Lakes region may experience a warmer-than-average winter, according to the National Oceanic and Atmospheric Administration, DTE says it still expects energy use to rise from last year.

The Public Service Commission recently approved a rate increase for DTE Gas Co., impacting 1.3 million customers across 500 communities statewide. The change took effect on Nov. 21.

Residential customers using 100 cubic feet of natural gas each month can expect a $1.98 monthly increase, with an additional 66-cent surcharge for infrastructure investments that will rise annually, reaching $6.28 by 2029.

Matt Helms, a public information and media relations specialist for the PSC, emphasized that rate increases are structured to allow utilities to recover their costs for necessary services. 

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DTE initially requested a $266 million increase, but the commission approved a reduced amount of $113.8 million. 

Dana Nessel, the state attorney general who intervened in the rate case, argued that the original request was excessive.

“DTE is once again seeking PSC approval to bill its customers for corporate jet travel by executives on top of these inflated costs. Such exorbitant expenditures not only inflate customers’ bills but also undermine DTE’s corporate pledges to reduce greenhouse gas emissions,” Nessel said.

Helms said the PSC follows a regulated rate-making process, setting rates through an evaluation of costs and needs, which must balance affordability for consumers with the utilities’ financial requirements. 

For residents facing difficulty affording their energy bills, several programs aim to provide relief. 

The State Energy Assistance Program, funded through the Low-Income Energy Assistance Fund, supports eligible households by covering part of their utility costs.

State emergency relief is another key resource for those at risk of shutoffs, while the home heating tax credit helps low-income residents offset energy costs.

Bob Richard, the president of DTE Gas, said, “Offering customers the affordable energy they need this winter is our top priority.” 

“We’re committed to helping them further through raising awareness on energy efficiency and by connecting them to financial assistance if needed,” he added.
Both the PSC and DTE urge customers to take energy-saving steps. They recommend sealing drafts, lowering thermostats at night and using energy-efficient lighting to reduce overall use. 

Helms emphasized the PSC’s efforts to expand energy affordability, noting the commission’s support for legislation that would make more people eligible for the energy assistance program while raising the amount of money in the Low-Income Energy Assistance Fund. 

“At the same time, the Low-Income Energy Policy Board has been evaluating policy solutions to guide the process of assessing energy affordability holistically, especially through linking energy waste reduction and weatherization services with energy assistance programs,” Helms said. 

The weatherization assistance program works with community action agencies to provide conservation services for low-income households at no cost to the residents.

Those services include wall insulation, programmable thermostat installation and furnace tune-ups.

Despite such resources, the rising cost of utilities remains a concern for many residents and lawmakers. 

DTE’s recently approved gas rate increase follows an electric rate increase in December 2023, sparking questions about how rate hikes affect affordability. 

While DTE says the increases are necessary, critics like Nessel argue that such price hikes often place an undue burden on consumers.

Capital News Service originally published this story.