Title
Resolution to Confirm Support for the City's Ongoing Interventions in DTE Electric and DTE Gas Rate Cases and Other Key Cases Before the MPSC Impacting Ann Arbor Residents
Memorandum
For nearly five years, the City has been intervening in various cases before the Michigan Public Service Commission ("MPSC"), including DTE Electric rate cases, DTE Gas rate cases, Integrated Resource Planning cases, Voluntary Green Pricing cases, and more. This effort has been led by the City Attorney's Office and the Office of Sustainability and Innovations, with occasional support from other City departments.
Thanks in part to the City's intervention in MPSC cases, DTE ratepayers have saved over $1 billion in electric and gas service expenses over the last several years. This success was the subject of a public memorandum from the City Attorney's Office titled, "Ann Arbor's Participation in DTE Electric and DTE Gas MPSC Cases Since 2022," which was made public at the City Council meeting on Monday, March 3, 2025. Since that time, the City has intervened in two additional cases - a DTE Electric rate case and a DTE gas rate Case.
Combined, the City has taken part in eleven different MPSC proceedings to not only challenge steep rate increases, but also improve the comprehensive experience of DTE customers, while simultaneously advancing actions that contribute to the City's A2ZERO carbon neutrality goals. Some of the notable achievements outlined in the memo include:
* Saving DTE Electric ratepayers over $1 billion and DTE Gas ratepayers over $150 million since 2022.
* Limiting average residential electric rate increases to less than 40% of what DTE Electric requested over the last several rate cases.
* Maintaining DTE Electric shareholders' rate of return on equity (ROE) at 9.9% and decreasing DTE Gas shareholders' ROE to 9.8% despite the companies seeking ROEs up to 10.5%. Every tenth of a percentage saves ratepayers millions of dollars.
* A directive for DTE Gas to upd...
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