DTE's proposed long term plan has hidden risks due to data centers, environmental group says
DTE Energy's proposed long-term energy plan, designed to meet future electricity demand, faces criticism from the Sierra Club of Michigan. The environmental group argues the plan includes hidden risks from data centers, which are driving the need for new natural gas plants. They are urging the Michigan Public Service Commission to require DTE to transparently model future energy needs with and without data centers to assess the true impact on residential customers.
DTE Energy is preparing to file its new long-term energy plan, an Integrated Resource Plan (IRP), with utility regulators. The company states the plan will ensure reliable and affordable electricity while meeting Michigan's 2040 net-zero carbon emissions goal, despite anticipating much higher electricity demand.
To meet this demand, DTE's plan includes updating its Fermi II nuclear power plant, significantly increasing solar energy and long-term storage, and constructing two new natural gas plants. DTE President and CEO Joi Harris emphasized that the plan, which is $3.5 billion less expensive than the 2022 IRP, reflects customer priorities for reliable power, affordable bills, and a cleaner energy future.
However, Bryan Smigielski from the Sierra Club of Michigan criticizes the plan, arguing it carries hidden financial risks primarily due to the electricity demands of large data centers. He expressed concern that residential customers could be left to cover the costs of unneeded natural gas plants if data centers, citing Oracle as an example with a BBB- rating, face bankruptcy. The Sierra Club plans to ask the Michigan Public Service Commission to mandate that DTE transparently model future energy needs, differentiating between scenarios with and without data centers to clarify who is driving the need for additional generation.