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Panel OKs $270M In Power Rate Cuts For DTE, Consumers Energy

July 24, 2018 - 5:12 pm
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LANSING (WWJ/AP) - There's some good news about your electric bill. 

The Michigan Public Service Commission has approved nearly $270 million in electricity rate cuts for customers of DTE Electric Co. and Consumers Energy Co. because of utility savings from the federal corporate income tax overhaul.

The panel on Tuesday ordered DTE to reduce rates by $156.9 million annually, for a $2.46 per month savings for a residential customer using an average of 500 kilowatt hours per month. It ordered Consumers Energy to cut its rates by $112.7 million annually, or $2.35 per month for similar residential customers.

The tax overhaul reduced the corporate rate from 35 percent to 21 percent and made other changes to tax rules.

“The Commission’s action ensures that Michigan residents will expediently receive utility bill reductions as a result of the federal Tax Cuts and Jobs Act that went into effect Jan. 1,” Commissioner Rachael Eubanks said, in a statement. “The quick action was made possible by Commission Staff working tirelessly to identify everything customers are entitled to receive from the tax law changes. We also appreciate the cooperation by utilities and stakeholders in the first step of our process and look for that to continue as we move forward with our plan that will deliver even more savings to residents and businesses in Michigan.” 

The commission said the rate adjustments will be reflected in customer bills starting in August.

The Associated Press contributed to this report.