The Michigan Public Service Commission (MPSC) is calling on the state’s largest utility companies, DTE Energy and Consumers Energy, to enhance their operational practices in response to an independent audit revealing their performance is “worse than average” compared to other utilities. This audit was initiated by the commission last year due to growing concerns regarding frequent power outages and public dissatisfaction.
The findings, presented by The Liberty Consulting Group in September 2024, recommend that both utilities improve tree-trimming practices, increase equipment replacement, and more thoroughly justify future rate hike requests to regulators. MPSC Chair Dan Scripps emphasized the need for actionable steps to address reliability issues that have persisted for nearly a decade.
Recent severe storms have disrupted power for over 319,000 residents, leading to outages that lasted days. In light of these recurrent problems, Scripps noted that the commission’s new directives aim to build upon lessons learned from the audit.
Both DTE and Consumers Energy have acknowledged MPSC’s recommendations and expressed their commitment to enhancing reliability. Consumers Energy’s spokesperson highlighted progress through their Reliability Roadmap, which aims to minimize outage durations. DTE Electric stated their plans to cut outage duration in half by 2029, reflecting a nearly 70% improvement in 2024 for customers.
The audit specifically identified fallen tree branches as a primary cause of outages, pushing for more regular tree trimming and urging Consumers Energy to consider placing more lines underground. Furthermore, MPSC suggested that utilities prioritize equipment replacement based on the condition rather than just the age of their infrastructure.
With recent rate hike proposals from both companies—Consumers requesting an increase of $436 million and DTE seeking $574 million—MPSC stressed the importance of substantiating such requests with detailed evidence. These hikes are under scrutiny by Michigan Attorney General Dana Nessel, who expressed concern over the timing and frequency of such requests given customer frustrations.
Despite the challenges highlighted in the audit and existing frustrations from customers, the ongoing efforts by the utilities to enhance their service reliability reflect a hopeful outlook for improved energy delivery in Michigan. Such initiatives may pave the way for a more resilient power infrastructure in the future.