MPSC approves electric vehicle pilot program, $273M DTE Electric rate increase
The Michigan Public Service Commission (MPSC) approved last week a new electric vehicle pilot program and granted DTE Electric Co. a $273.3 million rate increase.
The new EV program will last three years and operate under investments of $13 million. Known as Charging Forward, it will cover EV and school bus charging, and will focus on information campaigns, rebates for residential customers and up to $20,000 rebates for electric charger site hosts. DTE wants to maximize program participation and try out new practices and technologies to capitalize on the program’s possibilities for all ratepayers. Specifically, it intends to identify how best to manage charging times and locations, minimize investments and eliminate problematic impacts on the grid.
EV charging network ChargePoint was among those applauding the program’s addition.
“DTE’s Charging Forward program will support the deployment of thousands of electric vehicle (EV) charging stations so drivers can charge wherever they go – at home, at work, around town, and along highways,” Kevin Miller, director of public policy at ChargePoint, said. “Charging Forward uses a “make-ready” program design, which ensures that customers and businesses have a choice in selecting the most innovative charging technologies on the market. The $13 million program includes rebates for residential charging solutions and rebates to support publicly available chargers, which will require matching payments by customers to maximize the number of stations deployed while minimizing program costs. Encouraging EV charging to take place during off-peak times of day with smart charging solutions will put downward pressure on electricity rates for all of DTE’s ratepayers. Utilities like DTE play a critical role in our nation’s shift to electric mobility.”
As to the rate change, DTE had earlier proposed a $476.6 million increase, but the MPSC reduced it, saying the approved funding will allow DTE to continue investing in upgrades. The additional funds will go toward tree trimming as well as electrical system modernization. In all, residential customers using an average of 500 kilowatt hours of electricity per month will see bill increases of around $6.19. Commercial customers will see 4.34 percent increased and industrial customers a 2.5 percent increase. All will be effective as of May 9.
Beyond this, DTE has also been approved to invest in its distribution system to increase resiliency and limit power interruptions. This will culminate in $84.3 million for an advanced distribution management system and $111 million to modernize two system operation centers and a Detroit-based system hardening and upgrade program.
