While Customers Struggle With Shutoffs and Rising Bills, DTE Boosts Shareholder Profits and Blocks Clean Energy Alternatives
DTE Energy is disconnecting thousands of customers while increasing rates and expanding fossil fuel infrastructure, according to a new report. Despite growing energy affordability concerns, the company has continued investing in natural gas and opposing community solar, even as its profits surged 41% in 2024.
The report, released by the Center for Biological Diversity, analyzed shutoff data and financial records from six major utilities, finding that DTE cut power to 150,000 customers in 2024—most during the summer—while paying $607 million to shareholders.
Advocates say the company’s business model prioritizes profits over affordability and reliability, with rate hikes and time-of-use pricing disproportionately impacting low-income households. Meanwhile, DTE continues investing in gas-fired power and fighting policies that could expand community solar access for residents struggling with high bills and frequent outages.
Fossil fuel-driven heating, climate disasters and utility rate hikes often hit vulnerable populations hardest, said Selah Goodson Bell, energy justice campaigner at the Center for Biological Diversity and co-author of the report.
“Extreme temperatures force customers to use more electricity to keep their homes cool or warm,” Goodson Bell told Planet Detroit.
He said this disproportionately impacts low-income areas and communities of color, where residents are subjected to the urban heat island effect and have homes with poor insulation that cost more to heat or cool
The report analyzed shutoff and financial data from six major utilities to assess the impact of business practices on customers. It found that DTE was shutting off power to tens of thousands of customers during summer months while corporate earnings soared.
Meanwhile, DTE has continued to invest in natural gas infrastructure. It has also floated the need for more gas generation, which would add to human-caused global heating. And the utility has fought community solar efforts that advocates say could help improve affordability and reliability for customers.
DTE shut off gas and electric service to 378,000 customers between 2020 and October 2022. In 2024, the rate of shutoffs increased. DTE shut off electric service to 150,000 customers for nonpayment, with most disconnections occurring between May and September. Only one of the six utilities listed in the report shut off power to more customers than DTE.
Last summer’s utility shutoffs in southeast Michigan coincided with above-average temperatures and the introduction of time-of-use rates which increased energy costs for customers during the hottest parts of the day. In Detroit, average temperatures in May, June, and July ranked among the top 3% ever recorded.
Time-of-use rates can deepen inequities by making electricity more expensive when demand is highest, disproportionately affecting vulnerable households, the report says. It describes them as a “regressive attempt to mitigate the summer surge in energy demand and relieve pressure on the grid.” A 2019 Ohio State study also found that such pricing “disproportionately impact[s] the energy bills and health of vulnerable households.”
The report notes that DTE rate increases added $774 million in costs to customers between 2015 and 2019. Further increase followed with a $368 million rate hike in 2023 and $219 million increase in 2025.
While DTE’s rate hikes have made electricity less affordable for customers, its profits have risen. From January to September the company reported $1.1 billion in net income – a 41% increase from the same period in 2023. According to the report, just 3% of the $607 million DTE delivered to shareholders during that period would have prevented all 150,000 of last year’s shutoffs.
DTE spokesperson Amanda Passage told Planet Detroit in a statement that the company is committed to keeping bills affordable.
“DTE and its agency partners offer a variety of assistance options to help those in need, including payment plans that fit their budgets. Last year alone, we connected customers to nearly $144 million in energy assistance,” she said.
Advocates Say DTE’s Business Model Prioritizes Fossil Fuels Over Reliability
DTE promotes its phase-out of coal and carbon-neutrality goals, but ratepayer advocates say the utility’s ongoing investment in natural gas and opposition to community solar harm residents and the climate.
Goodson Bell said DTE’s business model, which allows the company to earn a return on equity for its shareholders based on capital expenditures, incentivizes the company to invest in building new infrastructure – like gas plants that add planet-warming emissions.
He pointed to DTE’s deep ties to the fossil fuel industry as a key driver for continued gas investments, noting that DTE CEO Jerry Norcia recently led the American Gas Association, a gas industry lobbying group.
“If you don’t have a business model that appropriately accounts for health costs, for climate, for energy efficiency etc. then the utility is just going to keep building more and more,” he said.
Michigan advocates have previously criticized the utility and regulators for focusing on capital improvements at the expense of ongoing maintenance, like tree-trimming, which may do more to improve reliability but won’t earn shareholders a return.
Passage, with DTE, said the company is working to reduce emissions by phasing out its use of coal by 2032 and looking to meet the state’s goal of 100% clean energy by 2040.
Yet, the report says DTE is not only continuing to invest in fossil fuel generation but also opposes community solar, where residents subscribe to offsite solar arrays and receive bill credits for the energy produced.
DTE opposed two community solar bills introduced in the Michigan Senate in 2023 that contained a 30% carve out for low-income customers. Advocates argued the legislation would help residents save money and improve reliability, while a report from Michigan State University said it would have created an estimated 18,500 jobs and brought in $1.4 billion in investments over the next 30 years.
Goodson Bell said it’s especially egregious that DTE continues to fight community solar despite the utility’s poor reliability, which has a disproportionate impact on low-income areas and communities of color.
“To both squeeze money out of ratepayers and limit their access to the very things that could improve their lives, it’s particularly exploitative,” he said.
This article first appeared on Planet Detroit and is republished here under a Creative Commons license.
Photo by JK Nair, Own work, CC BY-SA 4.0
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