The Michigan Public Utilities Commission approved an average 2.28% increase in gas rates for DTE Gas Company customers.

DTE Gas Company, a subsidiary of DTE Energy, filed a request in January to increase rates by $266 million. DTE said this increase would fund infrastructure investments, provide funds to upgrade its natural gas transmission and distribution system, and support maintenance costs.

The requested amount included $106 million that was already reflected in fees from a surcharge that had already been approved. This meant it would have been a $160 million increase for DTE customers.

But Michigan regulators approved a rate increase of $113,788,000, representing a 57% reduction from what was requested.

What this increase means for DTE customers

An average resident using 100 ccf, or one hundred cubic feet, of natural gas will see their bills increase by $1.98 per month.

DTE customers will also see an increase of 66 cents each month due to the Infrastructure Recovery Mechanism (IRM) surcharge.

This surcharge will increase annually and customers will see an increase of $6.28 by January 1, 2029.

“The Commission approved a lower authorized rate of return on common equity of 9.8%, down from the previously approved 9.9%, and a capital structure of 50% equity and 50% debt,” according to the release.