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DTE customers slam rate hike request at MPSC public hearing in Detroit

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DETROIT (WXYZ) — There was uproar and anger from DTE Energy customers sounding off against a rate hike request from the company, while a number of community leaders spoke out in favor of it.

The Michigan Public Services Commission held a public hearing on the request Wednesday at Mumford High School in Detroit. The company is asking the commission for a rate increase to raise $456 million. It's money they say will be used to help improve the grid.

Watch our story from earlier in the day ahead of the public hearing below:

Residents asked to weigh in on $456 million DTE rate hike proposal

However, some rate payers were not happy.

“Let them use those record-breaking profits and do what they’re supposed to do,” said Max Boyd of Highland Park, who is a member of the organization Soulardarity.

The MPSC is tasked with approving a request from DTE to increase rates and got an earful from some residents in Detroit. Many are angry over DTE's service and the cost of it.

"You sit here and witness this abuse and you have the power to do something about it and you don't," said Roshaun Harris of the Eastside Community Network. "How do you sleep at night?!"

DTE says the $456 million request would be used to invest in the grid, providing a statement saying:

"DTE has invested billions of dollars into building the grid of the future – one that will deliver on our commitment of reducing power outages by 30% and cutting outage duration in half in the next five years. As we’ve invested, our focus has been and remains on affordability for our customers, keeping bills below the national average and any increase below the rate of inflation. We’ve also helped connect our most vulnerable customers with millions of dollars in financial aid to help pay their bills.  

We’re already seeing impacts of our work, which is why it’s critical that we continue these investments to build a smarter, stronger, more resilient grid that will serve our customers with the safe, clean, reliable and affordable energy they deserve now and for generations to come. We believe this is the best way to serve our customers and we look forward to their feedback."

DTE says the increase would amount to no more than 37 cents a day, or about $135 extra per year.

“One could say it’s only going to be a couple cents up but when those cents already don't exist, you’re putting strains on families and households,” Khary Frazier of Detroit said.

Many residents feel the improvements on the grid shouldn't come out of their pockets.

“They have enough profit to put into their business,” Frazier said.

“DTE is asking us to pay for their luxuries while we can barely afford to pay our monthly bills,” Rafael Mojica of Soulardarity added.

Previous coverage: Protesters gather outside DTE headquarters, say proposed 10% rate hike should be denied

Protesters gather outside DTE headquarters, say proposed 10% rate hike should be denied

The hearing was also tense at times as some nonprofit leaders, business owners and union leaders — many of whom said they work with DTE — came to speak on behalf of the company but were met with shouts and boos.

"DTE has been extremely helpful and supportive with us in meeting the needs of our community members," said Ron Lockett of the Detroit Association of Black Organizations. The organization's website lists DTE as a corporate partner and sponsor.

Previous coverage: Sweltering summer leaves metro Detroiters frustrated with costly electric bill

Metro Detroiters fed up with price of DTE bills rising

"It makes it more resilient in reducing outages. This is crucial in extreme weather as events become more frequent," said David Felton, who serves as vice president of DABO, before someone in the crowd asked if DTE wrote the statement for him.

"No, I looked it up myself, but thank you," Felton responded before later addressing to the crowd again. “What I’m going to do is I’m going to keep talking and I need you to shut up."

"I want to state that I'm in favor of this rate increase to rebuild the infrastructure," Rev. Horace Sheffield, CEO of DABO, said during the hearing. "I’ve had service delivery issues and I think a lot of things with the execution of the additional cost are addressed through this.”

The commission first began these hearings two years ago in response to an outpouring of people who wanted to speak out.

“Unlike the evidence that's apart of the record, we're not actually able to base a decision based on comments," said Dan Scripps, chair of the Michigan Public Services Commission. "They're not subject to cross-examination and other rigors, but it gives a sense of where the community is and that’s beneficial as well.”

In the past, the MPSC has still approved the rate hike request but for less than initially requested, which met the ire of some in the audience.

“We’re not dumb. We know DTE asks for an insane amount of money and then they’re expecting to get a lesser amount," Boyd said. "Then you come and check the box talking to all the wonderful residents of Detroit and you give them the exact amount they were expecting in the first place.”

With tensions high, frustrations were certainly heard, but the final decision is still unknown.

“We beg of you to stop and halt not just this rate increase but the one they’ll be asking for in a couple weeks and the one they’ll be asking for in six months,” Frazier said.