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Detroit City Council votes to explore energy alternatives to DTE

Detroit City Council votes to explore energy alternatives to DTE

Rule Changes Detroit, MI local

Council orders study of public power options after storm outages and rate hikes

September 28th, 2026: Report finds Detroit utility payments rising faster than other metros

Overview

Updated Sep 9

Detroit's City Council voted unanimously on Sept. 8 to study public power options. The vote came after a storm cut power to more than 450,000 people, and Detroit had a public utility of its own until 2013.

DTE says it has invested more than $1 billion in Detroit's grid over five years and restored 90% of customers within 48 hours of the September storm. State regulators approved a $74.5 million DTE Gas rate increase in September, and DTE is seeking $474 million more for its electric grid. Senate Democrats have introduced bills that would pay customers for long outages; the package remains in committee.

Why it matters

If Detroit breaks from DTE, it would be one of the largest US cities to leave an investor-owned utility in decades.

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Key Indicators

2.2M
DTE electric customers
DTE serves 2.2 million electric customers in Michigan, including most of Detroit.
$474M
DTE electric rate request
DTE's April 2026 request seeks $474 million and could raise residential electric rates about 10% beginning in March 2027.
$74.5M
DTE Gas rate hike approved
The Michigan Public Service Commission approved a $74.5 million net increase for DTE Gas, effective Oct. 1, about half of what the company sought.
41
Michigan municipal utilities
The Michigan Municipal Electric Association represents the state's 41 municipally owned electric utilities.
15%
Detroit utility payment rise
Average electricity and gas payments in Metro Detroit rose more than 15% year over year this summer, compared with about 5% nationally, Bank of America Institute found.
$44
Daily outage credit
Michigan's automatic outage credit is now $44 per day for customers who qualify under state rules, up from $42.

Voices

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People Involved

Jerry Norcia
Jerry Norcia
Chief executive, DTE Energy
Leading DTE through rate request and council exploration
GS
Gabriela Santiago-Romero
Detroit City Council member, District 6
Called for a study of energy alternatives, saying residents pay too much for too little
KA
Katie Abraham
Executive director, Michigan Municipal Electric Association
Says municipal utilities saved customers $400 million in 2023
 Stephanie Chang
Stephanie Chang
Michigan state senator, Detroit
Co-sponsor of bills to pay utility customers for long outages
JT
Jerry Tullio
Director of operations, DTE Energy
Says DTE's grid investment paid off in the September storm

Organizations Involved

DTE Energy Company
DTE Energy Company
Electric and gas utility
Detroit's sole electricity provider; seeking a $474 million electric rate increase and signaling another gas request

Michigan's largest utility, serving 2.2 million electric and 1.3 million gas customers.
Detroit City Council
Detroit City Council
Municipal legislative body
Voted to study public power options; awaiting a report from its Legislative Policy Division

Detroit's seven-member legislative body, representing four districts and three at-large seats.
Michigan Public Service Commission
Michigan Public Service Commission
Regulatory Agency
Approved a $74.5 million DTE Gas rate increase in September 2026; reviewing DTE's $474 million electric request

The state agency that regulates Michigan's investor-owned utilities, including DTE.
MM
Michigan Municipal Electric Association
Trade association
Represents 41 municipally owned electric utilities

Trade group for Michigan's 41 municipally owned electric utilities.

Timeline

January 1886 September 2026

8 events Latest: September 28th, 2026 · 1 month ago
Tap a bar to jump to that date

  1. Report finds Detroit utility payments rising faster than other metros

    Latest Data

    Bank of America Institute found average electricity and gas payments in Metro Detroit rose more than 15% year over year this summer, compared with about 5% nationally.

  2. State approves $74.5M DTE Gas rate increase

    Regulatory

    The Michigan Public Service Commission approved a $74.5 million net increase for DTE Gas, about half of the $162.7 million the company requested. DTE said it will seek another increase by mid-November.

  3. Senate Democrats introduce utility outage payment bills

    Legislation

    A package of bills, Senate Bills 1170-1175, would pay customers hourly for outages longer than 72 hours and require utilities to report more detailed outage data to the Michigan Public Service Commission.

  4. Detroit City Council votes to explore energy alternatives

    Policy

    The council voted unanimously to direct its Legislative Policy Division to research how other Michigan cities, including Wyandotte and Ann Arbor, manage their energy needs.

  5. DTE files rate increase request

    Regulatory

    DTE asks the Michigan Public Service Commission for an $11.06 monthly residential increase.

  6. Detroit Edison renamed DTE Energy

    Rebranding

    The company expands beyond utility operations into energy trading and non-utility businesses.

  7. Detroit Edison Company formed

    Consolidation

    Two competing electric companies merge, consolidating Detroit's power under one utility.

  8. Edison Illuminating Company founded

    Origin

    DTE's earliest direct corporate ancestor begins serving Detroit.

Scenarios

1

Detroit launches municipal utility study

Possible Resolves by End of 2027

Discussed by: Local energy advocates and municipal utility researchers

The council's exploration leads to a formal feasibility study, funded by the city, examining the costs and legal path to creating a municipal utility. The study would take 12-18 months and would face opposition from DTE and questions about the city's ability to finance the purchase of DTE's Detroit assets.

2

Detroit pursues community choice aggregation

Possible Resolves by Q2 2028

Discussed by: CCA advocates and energy policy analysts

The city creates a community choice aggregation program, allowing it to purchase electricity on behalf of residents while DTE continues to maintain the grid. This model has been adopted by dozens of California communities and would require state legislation or MPSC approval.

3

Exploration stalls, DTE keeps monopoly

Likely Resolves by End of 2027

Discussed by: Utility industry observers

The council's exploration produces reports but no structural change. DTE continues as Detroit's sole electricity provider, and the city focuses on regulatory battles over rates and reliability rather than pursuing a break.

4

Michigan approves higher outage payments for utility customers

Possible Resolves by End of 2027

Discussed by: State Senate Democrats and the Michigan League of Conservation Voters

Senate Bills 1170-1175 would replace the state's flat outage credit with hourly payments starting at $5 and rising to $25 after 72 hours. A qualifying 72-hour outage would pay about $1,057 instead of $88. The package has not advanced since it was introduced in September and remains in committee.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

November 2011 - September 2020

Boulder, Colorado municipalization (2011-2020)

Boulder voters approved a 2011 ballot measure to create a municipal utility to replace Xcel Energy, driven by climate goals and frustration with the investor-owned utility. The city spent over a decade and more than $20 million on studies and legal battles.

Then

Xcel fought the effort, and the two sides negotiated for years without a final break.

Now

In 2020, Boulder and Xcel settled, ending the municipalization effort in exchange for Xcel's commitment to clean energy goals.

Why this matters now

Shows how difficult it is for a city to break from an established utility, even with voter support and significant resources.

May 2010 - present

California Community Choice Aggregation (2010-present)

Marin County launched the first community choice aggregation program in 2010, allowing the county to buy electricity on behalf of residents while PG&E maintained the grid. The model spread rapidly across California.

Then

Dozens of CCAs now serve millions of customers across California.

Now

CCAs have become a mainstream alternative to investor-owned utilities, though they've faced challenges with power supply and credit ratings.

Why this matters now

Provides a model for Detroit that doesn't require buying DTE's infrastructure, only the right to purchase power.

Until 2013

Detroit's public electric utility

Detroit had a city-owned electric utility until 2013, when the city was facing bankruptcy. The city council is now exploring whether to bring public power back.

Then

The public utility ended as Detroit slid toward bankruptcy.

Now

DTE has supplied most of Detroit's power since, and the current council exploration is partly about restoring a public option.

Why this matters now

Detroit once had public power, and the current exploration is about whether to bring it back.

Sources

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r/Detroit Wikipedia DTE Energy Nordic Energy Planet Detroit ClickOnDetroit WXYZ Axios Detroit ClickOnDetroit ClickOnDetroit Axios Detroit