DETROIT – DTE Electric plans to sell $525 million in bonds to finance renewable energy projects, such as solar arrays and wind farms, and strengthen energy efficiency programs o reduce carbon emissions by more than 80 percent by 2050.
Shorter term, DTE Electric must meet stricter Michigan Public Service Commission regulations that require the utility to generate 15 percent of its power through renewable energy by 2021.
DTE is the fifth investment-grade energy company in the nation – and the first company in Michigan – to sell green bonds.
“Green bonds will help finance our low-carbon investments, which will enable us to continue moving Michigan toward a cleaner, more sustainable energy future,” said Gerry Anderson, chairman and CEO of DTE Energy. “This is a tangible way for investors to demonstrate their commitment to the environment, and is one of many steps in our aggressive plan to reduce carbon emissions by more than 80 percent by 2050. We’re proud to be among the first energy companies to offer this green investment option.”
With a maturity of 30 years at an annual fixed coupon of 4.05 percent, a DTE Electric green bond helps:
- Fund the development and construction of solar arrays and wind farms, including the transmission infrastructure to support renewable energy facilities
- Strengthen energy efficiency programs to help Michigan residents and businesses save energy and reduce bills
“A fundamental transformation in the way we produce power in Michigan has already begun,” Anderson added. “As DTE moves toward cleaner energy sources, we are focused on maintaining reliability and keeping energy affordable for our customers.”
DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric utility serving 2.2 million customers in Southeastern Michigan and a natural gas utility serving 1.3 million customers in Michigan.