LANSING, MI – Independent auditors have given their final grades on how well Michigan’s two largest utilities are providing electricity to 4.1 million ratepayers, and it’s unclear whether the companies even received a passing grade.

Investigators presented state regulators with an extensive list of problems found with DTE Energy and Consumers Energy’s power grid infrastructure. In addition to confirming a pattern of prolonged and widespread power outages, auditors found increased risk of electrocution to workers and the public, outdated electronic equipment and often overgrown right-of-way areas for power lines.

State utility regulators called this an extraordinary and unique investigation into the utilities’ operations. They will hear a review of auditors’ findings during a meeting of the Michigan Public Services Commission on Thursday, Sept. 26, at 1 p.m.

Commission Chairman Dan Scripps said the nearly 500-page report will be a valuable tool as the regulator works to reduce power outages, shorten the time to restore service after storms and keep people safe during power outages ensure. He called it a roadmap for a network that meets customer expectations.

“The review underscores that now is the time for both companies to focus more on strategic investments to prevent failures rather than reacting to them,” Scripps said.

DTE and Consumers officials confirmed that the audit found that their customers expect significant improvements to the electric grid.

Matt Paul, DTE president and top operating officer, said the company is committed to reducing outages by 30% and cutting downtime in half by 2029.

He said there would be a “dramatic improvement in reliability” over the next five years with a company plan that includes significant investments in smart grid technology, aggressive tree removal, infrastructure improvements and rebuilding parts of the grid.

“(Auditors) also point out that our plan is both ambitious and aggressive, and we are taking on this challenge,” Paul said.

Consumers Energy officials said the audit was constructive and the auditors were highly experienced. The utility pointed to its reliability plan for fewer and shorter power outages, including a goal of no customer going without power for more than 24 hours.

“Our investments are focused on the customers we serve by adding technology, burying power lines and clearing trees,” said Katie Carey, consumer spokesperson.

A brief analysis of the reports shows that there were both overlapping and distinct concerns regarding the two utilities’ power distribution systems.

Both DTE and Consumers performed worse than average among utilities in terms of average time required to restore service. Additionally, both utilities were unable to meet scheduled tree trimming schedules, even though falling branches were a major cause of outages.

What was unique about DTE was that about 45%, or about a million, electric ratepayers are served by an ungrounded 4.8 kilovolt system, which requires more time to locate and correct faults. This is in contrast to more modern 8.3kV or 13.2kV ​​systems, which pose a lower risk of electric shock to workers and the public.

Additionally, auditors found that with old and poorly maintained substation transformers, DTE has a high failure rate due to this outdated equipment.

Auditors found that consumers also experienced unique problems with the power grid.

Consumers’ low-voltage distribution poles are smaller and more prone to breaking during storms. Additionally, the company’s use of the collective terms “weather” and “unknown” as the listed cause of outages is inaccurate and obscures the actual causes of service failure, auditors said.

The audit lasted more than a year and was conducted by Liberty Consulting Group, based in Lebanon, Pennsylvania.

Experts from the utility watchdog organization Citizens Utility Board of Michigan have been studying the audit reports since they were filed this week.

Amy Bandyk, the group’s executive director, said the audit appeared to bolster its arguments in tariff and distribution plan cases for both companies.

“The major utilities are not paying enough attention to the best value for money, cost-effective solutions, such as more frequent tree trimming, and are putting too much emphasis on proposing capital expenditure that costs ratepayers a lot but the results are questionable. “Reliability benefits,” said Bandyk.

The audit is evidence that both DTE and consumers need to get these basic practices in order before regulators should even consider massive rate increases that both have been calling for.

“As we saw in a recent hearing, DTE was already pushing for increased capital expenditures based on auditors’ testimony even before these reports were released. Therefore, we expect that DTE will find that aspects of this review support the case for further rate increases to support further capital improvements,” Bandyk said.

Complete audit reports for both utilities can be found in the state’s electronic records system.

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