Michigan panel approves DTE pact to close, convert energy plants faster

The Michigan Public Service Commission on Wednesday approved an agreement struck by DTE Electric Co. and a host of environmental and business groups laying out a plan for the utility's energy generation over next 20 years.

In the settlement, DTE agreed to hasten the shutdown of its coal-fired Monroe Power Plant by three years; convert the coal-fired Belle River Power Plant in St. Clair County into a natural gas peaker plant; retire its diesel-powered River Rouge and St. Clair peaker plants; scale up development of energy storage and renewable energy production; donate money to groups that help customers pay utility bills and more.

Regulated Michigan utility companies must develop plans called integrated resource plans that serve as roadmaps for their future energy production, energy demands and strategies for reducing energy waste, improving reliability and protecting the environment.

DTE must file its next integrated resource plan by December 2026.

Some environmental groups praised the commission's approval of DTE's plans.

"Michigan's dirty air woes are a stark reminder of the need for more clean energy in the state," said Derrell Slaughter, Natural Resources Defense Council's Michigan clean energy advocate. "The settlement agreement for energy efficiency, battery storage and cleaner technologies will clearly benefit the health of customers by cutting dangerous air pollution."

DTE officials said the plan will help the company achieve its goal of generating net zero carbon emissions by 2050. The plan states DTE would generate 62% of its energy with renewable sources by 2042, when 20% would come from natural gas, 12% from nuclear and 6% from storage.

Twenty-one organizations worked on the settlement agreement, including the Michigan Department of Attorney General, environmental, energy, union and business groups. Most signed on to the version approved Wednesday.

Some groups, including the Michigan Environmental Council and Citizens Utility Board of Michigan, did not sign the agreement. They also did not object.

Citizens Utility Board Executive Director Amy Bandyk said the settlement agreement includes a provision allowing DTE to charge ratepayers in order to pay shareholders a return associated with the closure of the Monroe plant.

"It didn’t have to be this way," Bandyk said in a statement. "The clean energy progress that beneficial provisions of the IRP will achieve could have gone forward without the giveaway to shareholders. DTE could have planned to charge ratepayers for the undepreciated value of the Monroe coal plant over time, but without the 9% shareholder return.

"It is a shame because the benefits from other parts of the IRP are substantial," she said, citing cost savings from renewable energy expansion and energy waste reduction programs.

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