DTE seeks two new natural gas plants, more nuclear in energy plan
DTE Energy is submitting a long-term energy plan to the Michigan Public Service Commission, proposing two new natural gas plants, upgrading a nuclear plant, and expanding renewables to meet a projected doubling of electricity demand over 20 years. This increased demand is partly driven by data center development across Michigan, with environmental groups planning to intervene and advocate for cleaner, more cost-effective solutions than new natural gas. Specifically, Oracle and OpenAI's Saline Township data center is mentioned as influencing DTE's rate hike decisions.
DTE Energy Co. is scheduled to submit its integrated resource plan to the Michigan Public Service Commission on September 24, detailing a strategy to nearly double its energy supply over the next two decades. The Detroit-based utility projects a substantial rise in electricity demand, attributing it to economic growth, the increasing adoption of electric appliances and vehicles, and the expansion of power-intensive data centers throughout Michigan. CEO Joi Harris emphasized that the plan, informed by customer feedback, aims to balance reliable power, affordability, and a transition to cleaner energy.
The plan outlines the construction of two new natural gas plants, generating 2.1 gigawatts, and an upgrade to the Fermi 2 nuclear plant in 2036, boosting its production by 177 megawatts. Additionally, DTE intends to add 15 gigawatts of renewable energy capacity and 4.5 gigawatts of battery storage. The company also confirmed its commitment to discontinue coal usage by 2032, beginning with the closure of the Monroe Power Plant in 2028. These measures align with Michigan's 2023 clean energy laws, which mandate 80% clean energy by 2035 and 100% by 2040.
Environmental advocacy groups are preparing to challenge DTE's proposals. Daniel Abrams, senior associate attorney for the Environmental Law & Policy Center, stated their intent to intervene, arguing that DTE's plan inadequately incorporates virtual power plants and other flexible resources, and that more cost-effective alternatives to new natural gas exist. Similarly, Elena Saxonhouse, managing attorney for the Sierra Club's environmental law program, indicated the group's plan to negotiate the proposal, stressing the importance of energy solutions that protect public health and ratepayers, especially in light of the significant energy demands posed by data centers. Consumers Energy also recently filed its integrated resource plan, which includes proposals for two natural gas plants in Bay and Genesee counties, further indicating a statewide trend in energy infrastructure planning.