DTE Energy’s (NYSE:DTE) customers will soon see a decrease in their electric bills. DTE will be reducing the Power Supply Cost Recovery mechanism (PSCR), which represents the actual cost of the fuel and other sources the company uses to produce electricity, by approximately $300 million annually. This reduction will go into effect December 1 and will reduce average electric bills for residential customers by approximately $5 per month*.
“This is good news for our customers,” said Chief Operating Officer Matt Paul “We strive to provide our customers with safe, reliable and affordable energy, and this operating savings will give them some relief on their bills.”
The PSCR line item on customers’ bills reflects a portion of the costs of the fuel and other sources DTE uses to produce, purchase and transport electricity, which are beginning to stabilize. DTE reviews PSCR annually and adjusts customer bills to reflect these costs accordingly – customers pay what the company pays. When these costs decrease (or increase), DTE passes this on to its customers.
Earlier this year, DTE Energy filed a request with the MPSC to raise rates in order to continue investing to improve electric reliability and to support the transition toward cleaner energy for its 2.3 million electric customers – a decision on this request is expected by Dec 10
DTE shares dived 34 cents to $102.99.