LANSING, Mich. (Michigan News Source) – The U.S. Department of Energy (DOE) closed on a $1.6 billion loan that will fund upgrades to DTE Gas Company and lower energy costs for consumers in the process.

According to the DOE, the loan will deliver more than $700 million in cost savings to its 1.3 million Michigan customers through President Donald Trump’s Working Families Tax Cut. The loan will be used to modernize and strengthen 800 miles of distribution mains and service lines, as well as expand an existing compressor station.

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“Thanks to President Trump and the Working Families Tax Cut, the Energy Department is lowering energy costs and ensuring the American people have access to affordable, reliable and secure energy,” U.S. Secretary of Energy Chris Wright said. “This loan to DTE Gas will lower energy costs, create jobs and increase grid reliability for the people of Michigan.”

The announcement comes after DTE requested a $236.5 million natural gas rate increase. The Michigan Public Service Commission, a three-member panel that has already approved several rate hikes for DTE and Consumers Energy, is expected to rule on the case before October.