DTE Energy filed its April 2025 electric rate case, requesting a $574 million increase based on a 2026 test year. The company is seeking a 10.75% Return on Equity (ROE) to support its ongoing investments in grid reliability and clean energy initiatives. This filing is a critical component of DTE's strategy to ensure the recovery of its substantial capital expenditures.
A key element of this filing is the request to advance and expand the Infrastructure Recovery Mechanism (IRM), aiming to increase it to $1 billion by 2029. This expansion is supported by findings from the independent distribution audit, which highlighted the need for continued infrastructure investment. The IRM is designed to provide a more predictable recovery path for capital investments.
The expansion of the IRM could potentially stretch the time between future rate cases, offering greater regulatory stability. The final order for this electric rate case is anticipated in February 2026. Additionally, the Gas rate case is nearing a final order, with staff positions viewed as constructive by management.
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