DETROIT – DTE Energy has agreed to make seven changes centered on reliability, cost, environmental standards, and transparency after Michigan’s attorney general called for improvements.
“This tentative settlement is a win for Michigan ratepayers,” Michigan Attorney General Dana Nessel said. “DTE has agreed to many changes that will help ensure accessibility for low-income residents, improved environmental standards, and further transparency on DTE’s lobbying efforts before legislators.”
DTE filed the settlement agreement in the Integrated Resource Plan case that’s in front of the Michigan Public Service Commission. IRPs are filed at least every five years to create a projection of a utility’s plan for the near future.
Nessel’s office called on the company to improve service reliability, affordability, and accountability.
The MPSC is expected to consider the proposed settlement at its next meeting, Nessel said.
Here are seven highlights of the settlement, according to Nessel’s office:
Coal use
DTE Energy has agreed to end its use of coal to generate electricity in 2032, which is almost 10 years earlier than previously planned.
The Monroe coal plant -- which is the fourth-largest coal-fired power plant in the United States -- will be closed at that time. That plant is considered the third-largest polluter in the country, based on carbon dioxide emissions.
Closing the plant earlier will result in 21.2 fewer tons of carbon being released into the air, according to Nessel.
Affordability
Customers will save more than $100 million by securitizing at a lower rate over $1 billion in early retired coal plant assets and reducing the return on equity on the current coal plants.
Low-income customers
DTE Energy has agreed to donate $38 million to help make services affordable for low-income customers.
Of that total, $8 million will go toward energy efficiency and renewable projects for those customers, and $30 million will go toward reducing the amount of money that’s currently owed by those customers.
Transparency in political donations
The company has agreed to “provide transparency to its political donations,” Nessel’s release said.
DTE will disclose all donations of at least $5,000 publicly each October. That includes donations made by the parent company and regulated utilities.
Apply for funding
Nessel said DTE has committed to apply for any state and federal funding that becomes available and would help retire coal plants. The net savings would be passed along to customers.
Self-owned renewable energy
DTE agreed to increase the distributed generation cap from 1% to 6%, which will give more customers the option to own their renewable energy, Nessel said.
Low-income energy waste reduction
DTE agreed to allocate at least $43.8 million to income-qualified electric energy waste reduction programs in 2024 and another $53.8 million in 2025.
This part of the settlement is designed to help customers lower their monthly electric bills and reduce carbon emissions.
Here is a statement from DTE Energy chairman and CEO Jerry Norcia:
Our CleanVision Integrated Resource Plan will end our use of coal in 2032 while developing enough Michigan-made renewables to power approximately 4 million homes. Today’s historic agreement is an investment in Michigan’s future, and we are grateful that 21 organizations from across Michigan have joined us in bringing our proposal one step closer to reality. This partnership and dedication have helped us build the best plan possible for our customers. We are also proud this plan puts our customers first by reducing the future costs of our clean energy transformation by $2.5 billion, while reliably generating cleaner, affordable energy now, and for generations to come.
This plan will make Michigan a national leader in renewable energy by accelerating the Company’s move to carbon-free energy. We are proud to be Michigan’s largest producer and investor in renewable energy. Through our CleanVision Plan, we will invest $11 billion over the next 10 years – helping to retain and grow businesses in Michigan while ensuring the state meets its sustainability goals. This plan also continues our commitment to our employees, customers and communities, and we will direct an additional $110 million to support our most vulnerable customers. We appreciate the contributions of all stakeholders as we wait for the MPSC’s decision on the plan.
DTE Energy chairman and CEO Jerry Norcia
