Energy storage contracts approved to boost Michigan grid reliability

The Michigan Public Service Commission (MPSC) has approved six energy storage contracts, totaling 1,332 megawatts, aimed at enhancing grid reliability and advancing the state's energy transition. These projects, including the Big Mitten, Monroe I, Fermi, Fish Creek, Cold Creek, and Pine River energy centers, will allow DTE Electric Co. to meet capacity requirements from a previous settlement and provide power for a new 1,383-megawatt data center. The data center, under development by Green Chile Ventures LLC in Saline Township, Washtenaw County, will be supported by 332 megawatts of the approved storage capacity. Green Chile Ventures LLC is responsible for the development costs of this energy storage over a 15-year period, while DTE Electric will develop, own, and operate the facilities. The MPSC implemented safeguards to protect residential customers from subsidizing the project, including a 19-year minimum contract and a requirement for the data center to pay at least 80% of its contracted electricity use. In a related decision, the MPSC denied rehearing petitions filed by the Michigan attorney general and environmental groups, including the Sierra Club and the Natural Resources Defense Council. These groups had challenged the initial December 2025 approval of the data center. The commission found that the petitioners lacked standing and failed to provide new evidence or identify errors in the original proceedings, thus upholding the data center's approval. The MPSC highlighted that renewable energy paired with storage offers a more cost-effective solution than traditional fossil fuels.