DTE says it will pause rate hike requests for 2 years, citing increased revenue from data centers

DTE Energy has announced a two-year moratorium on electric rate increase requests, following an imminent filing with the Michigan Public Service Commission (MPSC). According to Joi Harris, president and CEO of DTE, this pause, extending until at least 2028, is contingent on increased revenue from two major data center contracts, expected to contribute nearly $9 billion to electric system improvements by 2045. The utility asserts that these contributions will reduce the financial burden on other customers and support grid modernization. However, the plan has met with significant opposition, particularly from Michigan Attorney General Dana Nessel. Nessel has filed a motion with the MPSC, arguing that DTE unilaterally altered the language in a prior MPSC order. This modification, she contends, could allow DTE to pass on the costs of serving these massive data centers to existing customers, contradicting the MPSC's original condition for approving DTE's contracts with the tech companies. One such data center in Saline Township has received MPSC approval, while another in Van Buren Township is awaiting a decision. Critics are concerned about the substantial energy demands of these facilities, with the proposed Van Buren Township data center alone projected to consume one gigawatt of electricity daily —enough to power 800,000 homes. Despite these concerns and the Attorney General's legal challenge, DTE maintains that data centers will benefit the state's economy and ensure that existing customers are not forced to subsidize their operational costs. The MPSC is expected to rule on DTE's current rate hike request by February next year.