Advanced Energy Perspectives

Given the market surge of air and ground source heat pumps, Michiganders have more options than ever to efficiently and affordably heat and cool their homes with electricity. Especially when paired with additional energy efficiency measures, load management, dynamic rates, and distributed energy resources (DERs), the savings can be significant. But until customers upgrade their appliances and ditch the fossil fuels, many remain at risk. In Michigan, gas utilities are rapidly spending on capital-intense pipeline replacement and modernization projects, leading to higher and higher delivery costs for their customers.

In its November 7 order in the DTE Gas Co. rate case, the Michigan Public Service Commission (MPSC) approved several key decisions to protect consumers and pave the way for more affordable heating options in the cold-climate state.  

DTE filed its request to raise rates by $266 million on customers in January 2024, noting that most of the dollars would go toward pipeline maintenance and modernization. This comes as part of a broader trend affecting the industry – natural gas utilities across the country continue to raise delivery rates at unsustainable levels, leaving consumers with skyrocketing gas bills.  

Illinois has made major progress towards a clean energy future over the last several years, but its journey to clean, affordable heat is just beginning. The state’s landmark energy bill, the 2021 Clean and Equitable Jobs Act (CEJA), was a major victory for decarbonizing the electric grid, though it did not directly address or create new policies aimed at decarbonizing heating systems. On this front, more work is needed to fully achieve 100% clean across the electric and building sectors. The good news is that key regulators, thought leaders, and decision makers in Illinois have already gotten started on grappling with this complex topic.