LANSING, Mich – Customers of DTE Gas Co. will see an average of $2.21 reduced from their monthly bills after the Michigan Public Service Commission (MSPC) today approved the second round of rate adjustments for the company tied to changes in the federal tax law.
DTE Gas will return a total of $24,995,319 to customers who will see the refunds, known as Credit B, on bills from January 2019 to June 2019. Customers who use an average of 10,000 cubic feet of natural gas a month will receive the $2.21 deduction.
The MSPC approved an initial bill adjustment in May, known as Credit A, for DTE Gas customers as a result of the Tax Cuts and Jobs Act (TCJA), which lowered the corporate tax rate from 35 percent to 21 percent. An average of $2.12 was declined from bill starting in July based on the the Credit A recalculations ordered by the Commission after the passage of TCJA.
DTE Gas is the seventh utility company to have its Credit B refunds approved by the MSPC, In September, refunds were approved for electric customers of Alpena Power Co. and Upper Michigan Energy Resources Corp. (UMERC), and gas customers of Michigan Gas Utility Corp. (MGU), Northern State Power Co. (NSP), SEMCO Energy Gas Co., and UMERC. In August, NSP was the first utility to have its its Credit B approved.
Including DTE Gas, the MSPC has so far ordered a total of $32,620,909 in Credit B refunds. That's in addition to $379.5 million Credit A rate reductions for utility customers in Michigan.
Credit A Calculations were the first round of refunds approved by the Commission. Customers have seen those monthly adjustments on their bills since the summer. Credit B refunds are calculated from Jan. 1, when the TCJA went into effect, to the date when Credit A adjustments started being applied to bills. A third round of rate changes, called Calculation C, will capture any remaining long term impacts of the TCJA
Still to be calculated are Credit B impacts for Consumers Energy Co. gas and electric, DTE Electric Co., Indiana Michigan Power (I&M), and Upper Peninsula Power Co. (UPPCO).