DTE reaches settlement on energy plan, agrees to retire coal plants early

DTE Energy, one of Michigan’s largest energy companies, on Wednesday reached a settlement with more than 21 Michigan organizations, agreeing to accelerate its transition to clean energy and provide additional support for low-income customers.

The company filed its original integrated resource plan with the Michigan Public Service Commission (MPSC) in November, detailing how the company would provide energy to its customers for the next 20 years.

Following a surge of comments and testimony from environmental justice, clean energy and consumer advocates from across the state, the company negotiated a settlement which includes an early retirement of the company’s Monroe coal plant, greater investments in clean energy, and financial support for community-led programs assisting low-income customers.

“DTE’s Monroe coal plant is a massive air polluter, impacting public health and our climate in Michigan. Every additional year of its operation exacerbates climate change and harms our communities. By retiring the plant sooner, we can have a greater positive impact on the state’s health and climate,” said Andrew Sarpolis, Michigan field manager for the Sierra Club, one of the organizations negotiating for the settlement.

Following the settlement announcement, Michigan Attorney General Dana Nessel, who negotiated in the settlement, released a statement highlighting parts of the agreement, including improvements Nessel called on the utility to make. 

“This tentative settlement is a win for Michigan ratepayers,” Nessel said in her statement. “DTE has agreed to many changes that will help ensure accessibility for low-income residents, improved environmental standards, and further transparency on DTE’s lobbying efforts before legislators.”

In the settlement, DTE agreed to end its use of coal to generate electricity by 2032, closing the company’s Monroe coal power plant ahead of the original plan of 2035. The plant is the fourth largest coal-fired plant in the nation, and is considered the third largest polluter in the nation by carbon dioxide emissions, according to the statement from Nessel’s office. 

In a statement, DTE said it would provide retraining for employees impacted by the coal plant closures, and would continue to partner with the communities where the plants were located on future economic development opportunities.

The company also said it would repurpose its Belle River coal-fired power plant to run on natural gas.

Gloria  Lowe is the founder and CEO of We Want Green Too, a Detroit-based nonprofit intended to help veterans and community members become leaders of the emerging green economy. 

“DTE’s plan will have to prioritize BIPOC and low-income communities that have suffered the devastating public health impacts from pollution and the climate crisis first and worst,” Lowe said in a statement.

“While DTE will retire its Monroe coal plant earlier than scheduled, operating it until 2032 and the utility’s reliance on fracked gas continues to be problematic. We’ll continue fighting to end the use of fossil fuels in Michigan to protect the health and environment of our communities,” Lowe said.

DTE will also donate $38 million, with $30 million going toward energy assistance and $8 million going to support organizations that will provide solar and battery installation, including funding for home repairs and energy efficiency needed to complete these upgrades. 

In addition to DTE’s requirement to report political contributions, DTE must now provide increased transparency about its political spending. DTE must publish an annual public disclosure report beginning in October that documents any contributions to an individual or entity that add up to $5,000 or more. DTE rejected a proposal in May that would have increased transparency around its political contributions.

The company also committed to applying for any state or federal funding for the retirement of coal plants, and passing along the net savings to consumers. 

DTE also committed to raising its cap on distributed generation to 6%. Michigan state law only requires DTE to purchase 1% of its average yearly peak load from customers generating their own energy. Past that point, customers are not entitled to compensation for the power they generate.

The energy company will also set aside a minimum of $43.8 million for income-qualified electric energy waste reduction programs in 2024 and $53.8 million in 2025. According to Nessel’s office, this will help customers lower their monthly electricity bills and reduce carbon emissions.

MPSC approves much smaller rate increase for DTE after activists pushed back

DTE highlighted additional aspects of the agreement in a blog post on its website, as well as in a statement.

The company committed to developing more than 15,000 megawatts of renewable energy by 2042, the equivalent of powering about 4 million homes. DTE also pledged $11 billion in investments into clean energy over the next decade, which it said would support more than 32,000 jobs and reduce costs for customers by a projected $2.5 billion.

“This plan will make Michigan a national leader in renewable energy by accelerating the Company’s move to carbon-free energy,” DTE Chairman and CEO Jerry Norcia said in a statement.

“We appreciate the contributions of all stakeholders as we wait for the MPSC’s decision on the plan,” Norcia said.

The settlement must be approved by the Michigan Public Service Commission, which regulates the state’s energy utilities. The commission is expected to consider the agreement at its next meeting on July 26.