DTE, water costs cause “energy burden”

This story is part of Outlier Medias Detroit can afford Series that examines the real cost of living in the city.

Ethelyn Carroll is 77 and still lives in the house she grew up in. When Carroll was a child, air conditioning was too expensive for most homeowners. She still can’t afford air conditioning today because she’s afraid of high electric bills.

Without air conditioning, she can afford her electricity and gas bills, which are about $85 during the summer months. In the winter, her bill rises to $200 to $300, and she says she can barely afford it.

Experts use the term “energy burden” when talking about utility affordability. A household has a high energy burden if it spends more than 6% of its monthly income on electricity and gas utilities.

According to DTE, the average electric bill in 2023 was $115 a month, and its customers paid an average of $76 a month for natural gas so far this year. Many Detroiters have higher-than-average bills because so many homes are older and don’t cool or heat as efficiently as newer ones.

According to DTE figures, Detroiters pay about $2,292 annually for gas and electricity. With a median household income of $36,453, the average Detroit family is “energy burdened.”

Even public utilities in Michigan have no regulations mandating affordability. State regulators grant DTE nearly exclusive rights to generate and sell electricity and gas to residential customers in Detroit. While solar energy can help people lower their monthly electric bills, they must be able to afford the initial cost of the solar panels.

According to the Detroit Water and Sewerage Department, the average water bill for a family of four in Detroit is $112 a month. The nonprofit think tank Public Sector Consultants recommends that households with incomes below 150 percent of the federal poverty level should spend less than two percent of their income on water bills. The median income in Detroit is less than 150 percent above the poverty level, and the average family of four in Detroit would spend about four percent of their monthly income on water without assistance.

Support programs

More than 24,000 Detroit households rely on DWSD’s Lifeline plan to pay water bills. The plan keeps bills between $18 and $56 a month, and families earning up to 200 percent of the federal poverty level ($62,400 for a family of four) are eligible. DWSD spokesman Bryan Peckinpaugh said the program will be available through at least 2025. Residents can sign up for the Lifeline program here. DWSD has a new “EasyPay” plan for residents with water bill debt. After signing up for $10, residents – including those on the Lifeline plan – can pay off debt. The department has resumed water shutoffs for residents who can’t pay their bills.

A bill in the Michigan Senate would create a statewide water pricing program like Lifeline and ensure its long-term funding. Currently, the bill is stuck in committee.

Reliable help in paying gas and electricity bills is harder to find.

Detroiters who are having trouble paying their DTE bills should call the United Way at 2-1-1 or DTE directly at 800-477-4747 to inquire about shutoff protection programs, payment plans and a program for low-income customers with DTE debt. The utility also has an energy counseling unit for customers who are having trouble with these programs. You can reach the unit at 800-317-9073.

State Emergency Relief is an assistance program that can help low-income families avoid power shutoffs and pay their energy bills. The program is available year-round, but Detroiters who specifically need help with their energy bills will not be able to apply for funds until October 1.