DTE, Consumers Energy customers to gain $162M in refunds

As a result of corporate tax changes resulting from the federal Tax Cuts and Jobs Act (TCJA), the Michigan Public Service Commission (MPSC) approved last week Consumers Energy Co. and DTE Electric Co. to return $162 million to their customers beginning in January.

The result will be $92,812,177 from DTE and $69,678,486 from Consumers, spread out throughout the next six months. It is part of the second round of refunds, known as Credit B, which has totaled nearly $230 million on top of the $379.5 million refunded in the first round of decisions, Credit A.

On an individual level, this will amount to around $3.08 per bill for residential Consumers customers and $3.33 per bill for DTE customers, based on an average monthly use of 500 kilowatt hours.

Only one more bill adjustment round awaits. Calculation C will be announced next year for Consumers, DTE, Alpena Power Co., I&M, Michigan Gas Utilities Corp., Northern States Power, SEMCO Energy Gas Co., Upper Michigan Energy Resources Corp., and Upper Peninsula Power Co. The billing adjustment will account for long-term budgeted items that the first two rounds did not cover.

All of this stems from a Commission order last December, which demanded utilities refund their customers from TCJA savings. The TCJA lowered corporate rates from 35 percent to 21 percent.