DTE says it will cut rates by 3% after federal tax reform

Consumers in Michigan are likely to get a break on their heating and electric bills within the next few months, as utilities pass along some savings from lower corporate taxes.

DTE Energy said Tuesday that it has proposed cutting energy rates by 3% for its average customers, as a result of a reduction in the new federal law.

DTE said it expects that nearly $190 million in savings will be passed along to customers in 2018.

Customers are expected to see savings as early as May, according to Carly Getz, DTE Energy media relations specialist. Bills are based on usage, so the savings would vary by customer.

DTE said the lower federal corporate tax rate will help lower bills for DTE's 2.2 million electric and 1.3 million gas customers.

In late December, Michigan regulators ordered utilities to review the impact of new federal tax cuts and outline a plan for how savings can be passed along to customers through lower electric and gas bills.

The deadline was Jan. 19 for utilities to file comments with the state on their proposals.

Utilities are expected to see a sizable reduction in their federal taxes.

Jackson-based Consumers Energy said Friday that it submitted a proposal to lower customer bills by about $200 million, as a result of federal tax reform.

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Katie Carey, director of media relations for Consumers Energy, said customers could see rate cuts by the second quarter, if Consumers receives approval from the Michigan Public Service Commission, as expected in February.

In general, she said, the proposal by Consumers requests an average 3% to 4% reduction across various customer classes.

Contact Susan Tompor: stompor@freepress.com or 313-222-8876. Follow Susan on Twitter @Tompor.