Why is Energy Unaffordable for East Detroiters?
- Jul 30
- 3 min read
by Brianna DeGhetto, University of Michigan Undergraduate Student, We Want Green Too Fellow
In February, DTE received approval for a $242.4 million rate increase from the Michigan Public Service Commission (MPSC), a three person commission regulating utility operations in Michigan. In late April, only five days after the MPSC authorized this request, DTE filed for another rate increase of $474.4 million. This is one of the largest increases DTE has historically asked for (Ignaczak). As a result, residents across Michigan will be further burdened with higher utility bills, with East Detroit residents especially bearing the forefront of financial and mental strain. Detroit residents have long experienced high DTE utility rates. According to an article written by the U.S. Bureau of Labor Statistics titled, “Average Energy Prices, Detroit-Warren-Dearborn - November 2023,” From November 2020 to November 2023 electricity prices in Detroit surpassed the national average by 27.2%, a trend that remains today. Data from We Want Green Too (WWGT) interest and enrollment forms from East Detroit residents seeking to participate in either the Whole Homes Whole Communities or Healthy Homes Production programs, have shed some light on why this energy affordability disparity occurs, and how residents are impacted by it.
East Detroit residents experience older infrastructural issues, resulting in their homes being less energy efficient. 92.6% of WWGT interest form respondents, an overwhelming majority, reside in homes built 100 or more years ago. Older homes tend to have less modern electrical appliances, poor insulation, and air leaks. These structural deficiencies in older housing require more energy in order to provide proper heating and cooling throughout the house, leading to higher utility bills for residents. Additionally, 50% of WWGT program interest form respondents have an annual income between $0-$21,250, falling into the category of a low income household. These economic barriers make it difficult for residents to afford housing improvements that would increase the energy efficiency of their homes. When DTE raises its rates, without any alternatives available, East Detroit residents are left unequipped to handle these high expenses because of these infrastructural and financial factors.
Having high utility bills is more than a financial burden, it also impacts the everyday behavior of residents. 70% of WWGT interest form respondents reduced their energy consumption to an uncomfortable or inconvenient level to save on their electricity or gas bills. Additionally, 40% of respondents reduce their energy consumption almost every month. East Detroit residents have to change their energy usage just to afford their utility bills, even at the expense of their comfort. 60% of interest form respondents also reduced or forgone expenses for basic household necessities, such as food or medicine, in order to pay an electricity or gas bill. This poses a serious threat to East Detroit residents’ overall health as they are forced to choose between their next meal, medication necessary for their well-being, or a utility bill. Simultaneously this creates a mental stressor on residents, as the risk of living without energy looms over their financial decisions. Living in uncomfortable heating and cooling conditions, alongside budgeting non-negotiable items are difficult decisions that East Detroit residents have to make daily in order to afford their energy bills.
Increasing DTE rates make it harder in general for Michigan residents to have access to affordable energy. However, different residents across Michigan are affected by these rate increases from pre-existing factors outside of their control. Houses across Michigan can be more or less energy-efficient depending on their infrastructure. Additionally residents might not have access to other utility providers besides DTE depending on their location. It’s important to analyze these components, to resolve the energy affordability issues faced by residents. East Detroit residents face specific barriers that make their utility bills highly unaffordable with many residents experiencing infrastructural issues and economic hardships. This leads to East Detroiters changing their lifestyles to afford their utility bills, even if it means living in great discomfort, or budgeting essential items like food and medicine. This shouldn’t be the standard for East Detroit residents, but We Want Green Too’s program intake data shows that it is. DTE should be held accountable for their high, unaffordable rates. If yet another rate increase is approved, East Detroiters will be left with even more mental, financial, and even physical strain as they try to afford their utility bills. Access to energy is essential to a good quality of life, and East Detroit residents deserve this right just as much as any other person.
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