'A flat-out money grab.' DTE customer outraged over new meter cost for generator

Oct 26, 2024

(WXYZ) — Fed up with power outages, one local man says he decided to invest in a generator for his house, only to face sticker shock from the power company.

Now he’s calling out DTE for what he says is an outrageous price hike.

Massive storms have been wreaking havoc on metro Detroit in recent years, causing power outages that last for days. It’s become all too familiar for families in Michigan.

“90% of this neighborhood has had to go get generators because of this,” said Livonia resident Kelly Prewitt recently.

Many DTE customers have also been expressing outrage recently over the company’s proposed rate hikes.

Related Video: Protesters gather outside DTE headquarters

“We need some kind of break, especially from the utilities and things of that nature,” DTE customer Quinton Swift told us last spring.

Now there’s another cost increase that long-time DTE customer Tom Kallas says stunned him.

“We're held hostage to whatever they want to charge us,” said Kallas.

The retiree from Milford says after the last power outage at his home, he and his wife finally decided to invest in a whole-house generator.

“This is our retirement home that my wife and I saved for for many years. And we're on a well, we're on septic. And if we don't have power, it's very difficult if you don't have water,” said Kallas.

Kallas says he was shocked to learn that on top of having to pay for an already expensive generator, DTE planned to charge him a lot to upgrade his gas meter.

“There's no problem with the meter. It just won't flow to the level that they need,” said Kallas about the need for a larger meter to be compatible with the generator.

Up until April 12, 2024, DTE charged customers needing a gas meter upgrade for generators a flat fee of $485. But now they’re billing customers for both labor and materials.

“I just yesterday paid $2,232 to upgrade my meter,” said Kallas. “That just doesn't sit well with me.”

Kallas says he doesn’t understand why they raised the price so much.

“DTE is not reliable with their electric service. It goes down far too often. I don't think it's all their fault. I think they do a Herculean job of trying to bring it back up when it happens. But they are unreliable regardless of the reasons. And when people like my wife and myself decide that we want to protect ourselves from DTE, I don't feel like I should have to pay a mafia-type $2,232 to upgrade my meter in order to be able to get a generator,” said Kallas.

Not only did the price jump dramatically – Kallas says he was frustrated when DTE required him to pay the fee in full in order to get on their installation schedule for some time in late March of 2025.

“Since when do you pay six months in advance for something that costs that much,” said Kallas.

DTE would not agree to an interview.

In a statement, DTE Corporate Communications Manager Chris Lamphear said higher costs from inflation prompted them to increase the price of a meter upgrade:

“DTE Energy is focused on ensuring all customers have the safe, reliable and affordable energy they need to light and heat their homes. Customers interested in making any upgrades involving natural gas, such as a whole-home natural gas generator, should reach out to DTE first to ask if the natural gas meter and service line can accommodate additional capacity and to receive an accurate quote if a service upgrade is required. DTE’s costs to upgrade a property’s natural gas service have increased in recent years due to inflation. These rising prices, plus DTE’s desire to not spread the costs across its entire customer base, have led to the increase seen by customers wishing to upgrade their service…. DTE does not mark up these costs – they are our actual costs for labor and materials. An up-front payment is required to secure the new meter and to confirm scheduling, and it ensures the work can be scheduled and performed in the most efficient and cost-effective manner possible.”

“I don't think they're being honest. I absolutely don't. I think this is a flat-out money grab and everybody can put everything on inflation,” said Kallas. “And I think the real reason is somebody at DTE wants a new airplane or new executive office furniture or better executive cars or a bigger bonus program. I know how that operates. I was a senior executive myself for 40 years, so I don't buy this. And I just think it's hooey.”

DTE has come under fire recently by Michigan Attorney General Dana Nessel after the company included private jet use costs in their requests in front of the Michigan Public Service Commission to raise rates.

According to testimony from the AG’s expert, DTE executives and certain board members “...took 16 trips on the corporate leased aircraft in 2022...” to conferences and board meetings—costing $68,910.

“We pay the highest residential electricity rates in the Midwest. And customers are stretched thin and overburdened,” said Amy Bandyk, the Executive Director of the Citizens Utility Board of Michigan (CUB).

CUB is a non-profit group that advocates for residential rate payers. They’ve been pushing back against DTE’s recent rate increase requests.

“Compared to our neighbors in the Midwest, they don't have the same problems and we don't have that different weather or anything else. They [the utility companies] need to focus on getting back to the basics and getting up to speed on the maintenance that they should have been doing all along but have gotten so behind on that the customers are paying the price for it,” said Bandyk.

“Residential customers are just being asked to pay too much for substandard service. We are experiencing rate hike after a rate hike. People are sick of it,” Bandyk added.

Kallas is definitely sick of the rising rates and the extra two grand he hadn’t factored in for a generator purchase.

“This is a necessity. People might argue you don't have to have a generator. When you work out of the house at times, as my wife does, and with my four dogs and the hospice work I do, I've got to have power all the time. And I don't think I should be penalized because I'd like it,” said Kallas.

DTE’s Lamphear says, “Anyone considering upgrades involving natural gas should reach out to DTE before contracting any work. Call 800-338-0178 or visit dteenergy.com/generator.”

Here is information from the Michigan Public Service Commission about changes to gas meters:

The tariff has two parts. First is the $485 flat application rate and second is a charge for time and materials for the actual installation. Historically, DTE was only charging the $485, but the company recently decided to follow the tariff as it is written and approved, permitting the company to include actual installation costs for time and materials.

The tariff info is below. For your information, all of DTE Gas Co.’s rate books are posted on our website.

Sheet A-28.00

SERVICE LINE AND/OR METER RELOCATION CHARGE

The charge for service alterations, when requested by the customer or made necessary by the customer, is $485.00, plus time and materials.

Sheet C-39.00

C8.1 Purpose

The Company proposes to make extension of its gas mains and/or service lines from time to time, at its own cost, to serve applicants whose requirements will not disturb or impair the service to prior users or will not require an expenditure out of proportion to the expected revenue obtainable therefrom. The Company reserves the right to delay or deny a request for service under this Rule, if fulfilling such a request could, in the Company’s opinion, create conditions potentially adverse to the Company or its customers. Such conditions may include, but are not limited to, safety issues, system operating requirements or capital constraints. The provisions under this Rule are in addition to the existing rules and tariffs for customer gas service. When relocation or modification of Company facilities to an existing structure with gas service is requested or made necessary by the customer, all costs for the relocation or modification shall be charged to the requesting party.

The 7 Investigators also asked Consumer’s Energy how much they charge for gas meter upgrades.

According to spokesman Brian Wheeler, “The cost to upgrade a gas meter to accommodate a Consumers Energy customer’s whole-house or non-portable generator can vary based on several factors, including the customer’s energy load, the size of the generator, the type of gas service and meter currently in use, and specific site conditions. The typical cost to upgrade a residential meter in this case can range from $300 to $2,000 or greater, depending on these variables. These costs are approved by the Michigan Public Service Commission.”

If you have a story Heather Catallo please email her at [email protected].