News Story

DTE to bury Detroit power lines in ‘strategic’ pilot

Southeast Michigan energy monopoly says areas with underground power lines have 30% more reliable energy

A DTE Energy pilot program in Detroit will test whether what the energy giant calls the “strategic undergrounding” of power lines will improve reliability.

DTE announced the pilot earlier this month. A Detroit Free Press report added details. DTE concedes that burying power lines is likely to reduce power outages. Areas with underground power lines “experience more than 30% better reliability than overhead, according to data from 2019 to September 2021,” the announcement states.

“Strategically burying sections of our existing overhead infrastructure, where it makes sense, is a part of our plan to improve reliability for our customers — but this will take time,” Errick Bridges, DTE’s capital projects manager, said in the company’s announcement. “Strategic undergrounding projects like this will help us improve reliability and safety across our service territory now and far in the future.”

The pilot will take place in the Buffalo-Charles and Davison neighborhoods on Detroit’s east side. DTE says it chose those areas “based on extensive data and research.” Work will begin next month, according to the Freep.

Timetables and cost estimates were not available as of publication time. DTE Energy did not respond to a query.

As the Freep’s Adrienne Roberts reports, DTE is close to wrapping up an earlier undergrounding pilot that started five years ago in northwest Detroit.

For years, DTE officials have blamed fallen trees for mass power outages, and they have stepped up the company’s tree-trimming efforts.

But after back-to-back storms in February and March caused back-to-back power outages, lawmakers have urged DTE to look beyond the trimming of trees.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

News Story

Michigan rental prices lag national average

More than $1,500 per month in the most expensive states, $923 in Michigan

While rental prices in Michigan have entered the political arena recently, newly released survey data shows rates here are below the national average. The survey was released on Aug. 31, a few days before roughly 200 Michiganders descended on the state Capitol Sept. 5 for a rally to complain that rental rates are too high.

Michigan ranks 30th in the nation on an important measurement of rental costs, according to rentdata.org, which collected information from the U.S. Department of Housing and Urban Development. In this case, being No. 1 means having the most expensive rent, while 25 and 26 are near the national average and 30 is below it.

HUD collects data on rental units, with utilities included, focusing on the amount representing the 40th percentile in each state. The number for Michigan is $923 per month. Arkansas has the lowest number among the 50 states, at $768 per month. The ten states with the highest rent for a two-bedroom unit averaged over $1,500 per month. Hawaii has the most expensive rent at $1,951 per month.

Some Michigan legislators introduced in June what is sometimes dubbed a “renter’s bill of rights,” aimed at creating more rental properties at cheaper costs. The legislation is likely to have the opposite effect, according to a recent report in Michigan Capitol Confidential.

Media headlines report rent prices as a factor driving higher inflation. “As to whether higher rents cause inflation, or rent causes inflation, it’s neither,” said Mackinac Center Director of Fiscal Policy James Hohman. “The Federal Reserve tries to control inflation and it doesn’t do it by setting rent prices.”

The Consumer Price Index is an official measurement of inflation, and it includes rent for primary residences. Rent has increased 20.1% from 2017 to 2022, slightly higher than CPI, which increased by 19.4% over the same period.

The median household income in Michigan is 92% of the national average, according to the U.S. Census Bureau, while the median gross rent here is 82% of the national average.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.