The Michigan Public Service Commission (MPSC) today directed The Detroit Edison Company to apply a specific rate design, if it chooses to self implement a rate increase on July 26, as allowed under Michigan law.  The MPSC notes that any self implemented rate increase would be off-set by a reduction in the power supply cost recovery (PSCR) factor the utility said it would implement beginning August 1.

The result, if Detroit Edison chooses to self-implement a rate increase on July 26, would increase the average residential customer's monthly bill by $1.66 (2.7 percent), taking the PSCR reduction into account.

Public Act 286 of 2008 permits a utility to implement a rate request through equal percentage increases or decreases applied to all base rates if the MPSC has not issued an order within 180 days of a complete application.

The utility on January 26 filed an application seeking a $378 million rate increase and other relief.  On June 26, the company filed proposed tariffs reflecting its intent to implement a rate increase of $280 million beginning July 26.  In that filing, the company indicated it expects the reduction in the PSCR factor to be in the 6 to 8 mills per kilowatt-hour range.

The MPSC is an agency within the Department of Energy, Labor & Economic Growth.

Case No. U-15768