Nessel wants to hold PSC 'accountable' in fight against data center

Michigan Attorney General Dana Nessel and various environmental groups, including Sierra Club, Michigan Environmental Council, Natural Resources Defense Council, and the law firm Earthjustice, have appealed the Michigan Public Service Commission's (MPSC) approval of energy contracts. These contracts are between DTE Energy Co. and developers OpenAI, Oracle, and Related Digital, for a hyperscale data center under construction in Saline Township, Washtenaw County.

In a brief filed with the Michigan Court of Appeals, Nessel contended that the MPSC commissioners failed to provide sufficient evidence for their approval, used a fast-tracked process that prevented thorough scrutiny, ignored their own standards for data center contracts, and overlooked issues with DTE's cost calculations. She emphasized the importance of holding the Commission accountable to protect Michigan residents and utility customers from potential hazards of these contracts and ensure future data center deals are properly vetted. Nessel also requested oral arguments on her appeal.

Despite the opposition, the three-member MPSC had unanimously approved the contracts in December, which allow DTE to power the data center and build a battery plant for it. The data center is projected to consume energy equivalent to one million homes. The commissioners included conditions to protect ratepayers, such as DTE agreeing to reduce power supply to the data center during energy shortages. The PSC maintains its conditional approval includes the country's strongest consumer protections for a data center power contract. DTE spokesman Ryan Lowry defended the contracts, stating the company's obligation to serve customers and denying that data center-related costs would be passed to other customers. Environmental groups also argued the contracts committed DTE to over $500 million in new infrastructure costs that could be recovered from customers.