DTE Customer Green Energy Charges, Maybe This Year (DTE)

DTE Energy (NYSE: DTE) has filed proposals with the Michigan Public Service Commission over plans to significantly increase the amount of  renewable energy generated in the state.  The company is using legislation passed  last year which calls for Michigan electric utilities to serve 10% of retail sales with renewable energy by 2015.   DTE is proposing an added 1,200 megawatts of renewable energy.

The company plans to construct renewable energy projects to meet about half of this capacity, and for the rest it plans to contract with third-party producers.  Wind resources could make the bulk of this contract with a small portion from solar energy.  DTE Energy has acquired easements on more than 50,000 acres of land in Huron County for development of a large-scale wind farm.

DTE will offer efficiency programs to help consumers save money on energy bills.  This program includes recycling older appliances providing incentives for buying efficient heating and cooling equipment.

Other initiatives are to help low income households with energy efficiency measures, incentives for the construction of new Energy Star homes, and plans to offer energy audits on existing structures. The audits would focus on basic energy-saving measures, and incorporate items such as compact fluorescent lights, low flow shower heads and programmable thermostats.

Utilities must make sure that shortages do not exceed $3.00/month.  The company proposed surcharges that would “average” about $0.85/month per Detroit Edison residential customer and $1.20/month per MichCon residential customer. Charges could begin appearing on customer utility bills later this year, following program approval.

DTE  stresses the dual-focus of being environmentally responsible and being affordable for customers.  In a recession that is a delicate balance, particularly there always seems to be a recession in Michigan.

The Detroit-based company’s stock looks much like the economic readings.  Shares are essentially on 52-week lows at $23.40.  The 52-week trading range was $23.84 to $44.97.  Before the end of last year, this stock had traded between $38 and $52 for just about the entire 5-year period.

Jon C. Ogg
March 5, 2009