LANSING (WWJ/AP) — Michigan regulators have authorized DTE Energy to increase electricity rates by 4 percent.

The Public Service Commission approved a $184 million annual rate hike Tuesday, effective Feb. 7. It’s less than what the Detroit-based utility self-implemented in August, so customers will initially get a refund covering the last six months.

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DTE had sought a $344 million annual rate increase and had self-implemented a $245 million increase.

“As part of its multi-year effort to modernize its infrastructure, DTE Energy in August 2016 increased customer rates,” DTE Electric President Trevor Lauer said in a statement. “The MPSC order issued today reduces customer rates from current levels and, as a result, customers will see a rate reduction and a bill credit. DTE Energy will work with the MPSC to calculate the credit and appropriately apply it later this year. Still, DTE Energy customer bills are equal to 2012 levels and below the national average.”

The final rate is 4 percent above what was set in DTE’s last electric case in December 2015.

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Commission Chairwoman Sally Talberg said in a statement that DTE will spend money to upgrade its distribution infrastructure. She says a primary reason for power outages is the lack of maintenance and the age of distribution equipment.

DTE has 2.2 million power customers in southeastern Michigan.

 

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