Natural gas customers will be able to count on even safer and more reliable service from DTE Energy after the Michigan Public Service Commission approved expanded investment in upgrading gas mains across our service territory.
A rate order approved Sept. 13 will help us ensure the continued safety and reliability of our natural gas distribution system while keeping prices fair and affordable for our customers.
The MPSC approved a $9 million increase, money that DTE Gas will use to accelerate the replacement of cast-iron and unprotected steel gas mains across our service territory from a 25- to an 18-year pace. As our natural gas distribution pipeline ages, there is a need to replace or retire some of the older pipes. DTE will invest $1.2 billion in our Michigan natural gas pipeline infrastructure over the next five years to maintain the safety and reliability of the natural gas system in both southeast and greater Michigan.
We are on track to replace more than 154 miles of gas main lines this year. Besides the acceleration of gas main replacement, we are making upgrades at compressor stations to ensure continued reliable and uninterrupted delivery to all customers as well as continuing our meter move-out program.
Because of the federal tax cuts passed in December 2017, the increase to our prices is partially offset by tax savings, meaning the average customer will see a nominal increase to their monthly bill. A separate line item that has been appearing on customer bills since July representing these tax savings will be removed from bills as of October 1, as these savings are now incorporated into our new price structure. Additional 2018 tax savings will be refunded to customers in 2019 when the MPSC approves our plans.