DTE Energy Company
) filed a modified Renewable Energy Plan which includes the
proposed reduction of monthly electric surcharges with the
Michigan Public Service Commission ("MPSC").
DTE Energy intends to reduce the surcharge paid by residential
customers by 86% from $3 to 43 cents. For the business classes,
the proposed surcharges will also go down by 85%. For
small-to-medium scale businesses, DTE Energy intends to cut
surcharges from $4 to $16.58 per meter to 60 cents to $2.51 per
meter. The large commercial and industrial houses will also
witness a drop in surcharges to a range of $2.71 to $26.68 per
meter from the current range of $16.58 to $187.50 per meter.
This translates into a $90 million decline per year in rates for
all residential and commercial consumers. With the energy
legislation passed in 2008, the company started implementing
surcharges from 2009 to meet costs required to fulfill the
state's renewable generation target of 10% by 2015.
DTE Energy has labored to keep costs down in order to provide
affordable electric services to its customers. The reduction in
surcharges has also been helped by the extension of the
production tax credits, which reined in operating costs. Also,
constant technological upgrades provided DTE Energy the stimulus
to expand its renewable portfolio, both wind and solar. This has
led the company to clinch sizeable power purchase contracts.
The combination of these efforts placed DTE Energy as a
frontrunner in clean energy services in Michigan. Besides the
rate cuts, the company will carry on with its programs to attain
the Renewable Portfolio Standards annually through 2029.
Currently, the mandate for the expected capacity generation is
set at 950 MW, down from the prior 1,000 MW. DTE Energy is close
to achieving the goal and has already realized 92% of it through
various contracts and projects. In fact, the company has set
aside $1.3 billion to achieve the renewable mandate of 10% of
energy generation from renewables.
With renewable comsumption projected to rise 3.3% in the U.S., as
per the Energy Information Administration (EIA), DTE Energy
certainly looks well positioned in the energy industry. Currently
the company holds a Zacks Rank #2 (Buy).
Also looking good are Zacks Ranked #2 (Buy) utilities
American Electric Power Company, Inc.
Based in Detroit, Mich. DTE Energy together with its subsidiaries
engages in the generation, purchase, distribution, and sale of
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