U-21291-0332

Overview

ABATE replied to DTE Gas’s exceptions in Case U-21291, urging the Commission to adopt the PFD’s disallowance of excessive Main Replacement Program costs, affirm a 50% equity ratio and 9.4% ROE, and reject DTE’s proposed inflation factors.

Key Points

• •ABATE supported limiting DTE’s main replacement target to 190 miles annually with a $62 million capital expenditure reduction.
• •ABATE argued DTE’s objections mischaracterized the evidentiary record and its own prior positions.
• •ABATE endorsed the PFD’s recommendation of an equity ratio no higher than 50%.
• •ABATE supported the PFD’s recommended 9.4% return on equity as reasonable for DTE’s risk profile.
• •ABATE asserted DTE’s proposed inflation factors were unreasonable and should be rejected.