December 1, 2023, the Michigan Public Service Commission (MPSC) approved a rate hike for DTE Energy starting December 15, 2023. This decision will significantly impact Metro-Detroiters during the holidays and throughout the harsh winter.
What You Need to Know:
Too Much Money: The approved rate hike grants DTE Energy a staggering $368,115,000 increase. This comes after the energy corporation reported a third-quarter gross profit of $1,580,000,000.
Last year, despite a request for $388,000,000, only $30,557,000 was approved. People-powered efforts reduced the increase by 90%, yet DTE will now receive almost the entirety of their original request and millions more.
We Should All Question Michigan Public Service Commission Deliberations when they favor DTE: of the commission’s $34.9 million budget, all but about $3 million in federal grants is paid by assessments levied against Michigan utilities. DTE and Consumers pay 88% of that assessment, or 80% of the total commission budget.
Too Many Questions: The MPSC’s Investment Recovery Mechanism (IRM), aimed to track investments in DTE Electric’s distribution system and ensure continued investment in the distribution grid to improve reliability and resilience, this won’t be completed until Summer 2024. The rate hike decision comes before a full review of DTE’s investments, compromising reliability and efficiency.
Too Cruel: Some of the rationale the MPSC used to justify the rate hike is to assist DTE during historic inflation. However, this prioritizes corporate interests during times of high inflation over the well-being of the people, their customer base, and the group the MPSC is appointed to serve.
Support Fair Energy Practices!
Soulardarity, a 501c3 organization, fights for Energy Democracy in Highland Park & Detroit MI. The organization began when DTE viciously removed all street lights throughout Highland Park MI. Since then Soulardarity has gathered support by installing solar street lights, organizing policy initiatives, and advocating for fair, equitable, sustainable, clean, efficient, energy for everyone. Visit Soulardarity.com and become a member today!…(read more)
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A rate hike for inflation is a tool used by central banks to control the rising cost of goods and services in an economy. When inflation rates begin to climb, central banks may choose to raise interest rates to help slow down the growth of prices and keep inflation in check.
Inflation occurs when there is an increase in the overall price level of goods and services in an economy. This can be caused by a variety of factors, including growing demand, rising production costs, or currency devaluation. When inflation is left unchecked, it can erode the purchasing power of consumers, lead to higher borrowing costs for businesses, and create economic instability.
To combat inflation, central banks such as the Federal Reserve in the United States have the power to adjust interest rates. By raising interest rates, central banks are effectively making it more expensive for businesses and consumers to borrow money. This, in turn, can slow down spending and investment, which helps to curb inflation.
While a rate hike for inflation can be an effective tool for controlling rising prices, it can also have negative consequences for the economy. For example, higher interest rates can lead to a decrease in consumer spending, a slowdown in economic growth, and an increase in unemployment. Additionally, businesses may find it more difficult and costly to borrow money for expansion and investment.
Despite these risks, central banks must carefully balance the need to control inflation with the potential negative impacts of raising interest rates. In some cases, a rate hike for inflation may be necessary to prevent runaway inflation and protect the long-term stability of the economy.
Overall, a rate hike for inflation is a powerful tool that central banks can use to help manage the ebb and flow of prices in an economy. By carefully monitoring economic indicators and making informed decisions, central banks can help to ensure that inflation remains at a manageable level, benefitting both businesses and consumers in the long run.
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