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Summary

Michigan utility regulators have approved a rate increase for DTE Energy Co.'s electric customers — amounting to about $6 more a month for residents — but less than what the utility sought.

The Michigan Public Service Commission on Thursday approved the $273 million increase, about $203 million less than the Detroit-based utility requested. The rate increase — nearly 9 percent for residents and about 4 percent for businesses — is effective May 9.

DTE said in a statement the increase will pay for new and updated equipment and technology.

Commissioners also denied DTE's request to assess a charge for customers who have installed renewable energy projects. DTE had suggested a distributed generation credit based on the monthly average real-time locational marginal price for energy. The MPSC ruled that the proper customer compensation is the cost of the power supply component of retail rates minus the cost of transmission. The commission also rejected DTE's proposed distributed generation system access contribution charge, finding that it is not based on a customer's usage of the distribution system and it is not equitable.

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