DTE Promises Rate Freeze Through 2028 But Ties Deal to Data Center Approval and Current Rate Hike

Attorney General Calls Proposal a Ransom Note

Michigan Attorney General Dana Nessel criticized DTE Energy for conditioning its promise to freeze electric rates through 2028 on the approval of a current rate increase and the successful launch of a controversial data center project.

"DTE only offers a break in rate hikes if they win some other unnamed data center approvals and their Saline data center comes online with no delay. This isnt a commitment, its a ransom note." — Attorney General Dana Nessel

DTE Announces Two Year Rate Freeze

DTE Energy announced on April 23 that it will file a $474.3 million rate increase request next week that could be its last until 2028. The utility said the pause would apply after the current rate request is complete, providing customers two years without an increase in rates.

"As long as the first data center project we are supporting comes online as planned by the end of 2027 and we are able to receive other regulatory approvals, we will refrain from filing another rate request until at least 2028," said DTE President and CEO Joi Harris.

The Saline Data Center Deal

The rate freeze is tied to DTE powering a 1.4 gigawatt data center for OpenAI and Oracle now under construction in Saline Township south of Ann Arbor. State regulators conditionally approved DTE power contracts for the project in December. The facility will demand more power than a million homes.

DTE spokesperson Jill Wilmot said the outcome of the rate request the utility plans to file next week will influence its ability to pause future requests, though she did not provide more specifics on what other regulatory approvals were being referenced.

DTE Still Seeking Rate Approval

DTE still intends to proceed with its new electric rate increase request next week. The utility has not yet filed the formal application with state regulators but said the ask will amount to $474.3 million when submitted on Tuesday, April 28. That will be a year and four days after its last rate request.

Michigan utilities are prohibited by law from filing to hike rates more frequently than once every 12 months. The requests take 10 months to be decided, so power rates will not rise until 2027.

DTEs electric rates last rose $242 million in early March, an increase of about 4.6 percent for residential customers.

Skepticism From Advocates

Advocates for residential ratepayers expressed skepticism about DTEs announcement. Amy Bandyk, executive director for the nonprofit Citizens Utility Board of Michigan, said DTE has asked for very significant rate increases in recent years.

"This rate hike could be big enough that the pause might not offer much relief," Bandyk said.

Bandyk also noted DTEs statements around the pause were strangely qualified, asking if the utility plans to condition the break between rate hikes on getting its full ask in the upcoming rate request.

"If so, DTE is using this pause as leverage to get a result in the next rate case that transfers more wealth away from ratepayers and toward DTE shareholders. In that scenario, ratepayers could easily end up paying more than if the pause wasnt happening," Bandyk said.

DTEs Defense

DTE maintains its rate hikes, which it has filed every year since 2022, are essential to update its aging power grid and reduce outages that have ranked among the longest in the nation in recent years.

Both the utility and state regulators pointed to significantly improved performance in 2025, though less severe weather in its service territory also contributed to that result.

DTE maintains no costs related to data centers are included in its latest rate request and promises the projects will not raise customer rates.

Data Center Critics

Other data center critics contend the boom in development driven by artificial intelligence is speculative, and ratepayers could be left holding the bag if the new demand does not materialize as planned.

The Michigan League of Conservation Voters also viewed the announcement with skepticism. Alex Kellogg, the groups energy accountability manager, argued the proposal is no more than smoke and mirrors stemming from public pressure against the company.

"Michiganders are not going to be held hostage by DTE for a data center nobody wants because it was approved the wrong way jammed down our throats with non disclosure agreements, a fast tracked rocket docket, and contracts so redacted they looked like swiss cheese," Kellogg said.

Attorney General Challenges Data Center Contracts

Michigan Attorney General Dana Nessel has appealed the decision to approve the Saline Township data center contracts in hopes of forcing a contested case and allowing her office and other consumer advocacy groups to review the contracts and submit testimony to the public service commission.

The Michigan Public Service Commission has called the safeguards some of the strongest consumer protections in the country. Still, they came under fire for acquiescing to DTEs request to approve the Saline Township data center contracts, made public only with significant redactions, on an expedited timeline and without opportunity for formal legal review by outside advocates last year.

DTE counters that its data center contracts include protections like minimum monthly payments from data centers regardless of usage, exit fees if they shut down early and other measures.