Regulators reject further discussion on DTE data center contract

The Michigan Public Service Commission (MPSC) unanimously denied Attorney General Dana Nessel's request to reopen and petition for a rehearing on energy contracts between DTE and developers for a large data center project near Saline. The MPSC also rejected her motion for a contested case proceeding to review six redacted contracts for three battery storage facilities. Attorney General Nessel criticized the MPSC for what she described as a secretive and rushed process, noting that her office and other consumer advocates had been shut out since the contracts were initially filed in October. She argued that DTE's response to the MPSC's conditional approval of two data center contracts on December 18 offered weaker protections for existing customers, specifically by altering language regarding how costs would be covered. While the MPSC's original order required DTE to accept conditions ensuring developers would cover costs without passing them to other customers, DTE's January 15 response changed the wording to state that "the aggregate revenues generated by the customer will cover the costs to serve them." Nessel warned this change could allow DTE to shift near-term costs to existing ratepayers. The MPSC, however, maintained that the reference to aggregate revenues did not alter or endanger the approved cost allocations. Nessel also challenged the MPSC's statutory authority to approve special contracts without a contested case hearing and questioned the enforceability of the conditions. Nessel stated her office would continue to explore remaining options to protect the people of Michigan.