Michigan Attorney General Dana Nessel is pushing back hard against DTE Energy's request to raise natural gas rates by $237.5 million — calling the proposed hike "excessive and unjustified" and urging state regulators to cut it by 85%.
Nessel filed testimony from four industry experts on Friday (March 20) with the Michigan Public Service Commission (MPSC), the state body that regulates energy companies. Those experts recommend capping any increase at just $34.8 million per year.
DTE Energy filed the rate hike request in November, seeking a 10% overall increase in natural gas rates — and at least 8% for residential customers. The company serves 1.3 million natural gas customers across Michigan.
Nessel argues that 85% of the expenses included in DTE's request are not adequately justified and do not meaningfully improve service reliability or affordability for customers. "DTE is raking in record profits while turning around and asking Michigan families to foot the bill for bloated, unjustified costs," she said in a statement. "I implore the MPSC to stand up for Michigan ratepayers, prioritize affordability for customers, and not rubber-stamp the demands of utility corporations."
This is not the first time Nessel has challenged DTE on gas rates. In November 2024, the company received a $113 million annual natural gas rate increase — less than half of its original request, in part due to Nessel's intervention. Since taking office, the attorney general's office says it has helped Michigan consumers save more than $4.1 billion through challenges to utility rate cases before the MPSC.
DTE, for its part, says the increase is necessary to maintain and invest in its natural gas infrastructure. Jill Wilmot, DTE's director of corporate communications, told Michigan Advance in an email that the company works to keep bills as low as possible. "We know that natural gas plays a vital role in our customers' everyday lives — from heating homes to cooking meals," Wilmot told Michigan Advance. "This request allows us to continue investing in the safety and reliability of our system, while keeping costs low for the customers who depend on us." The company also notes that its natural gas rates remain below the national average and among the lowest in cold-weather states.
The rate hike challenge comes as DTE faces broader scrutiny over its pricing. The company won approval for a $242 million electric rate increase in February, then filed notice of yet another electric rate increase just five days later. DTE has also announced plans to formally file for an additional electric rate increase in April.
The MPSC is expected to rule on the natural gas rate hike request in the fall. Customers will not see any change to their base natural gas rate until a final decision is issued — expected around October 2026.
