LANSING – The Michigan Public Service Commission   approved a settlement agreement on DTE Electric Co.’s integrated resource plan (IRP) for providing electricity that includes faster shutdown of the utility’s remaining coal-fired power plants and significant investment in wind and solar generation and energy storage.

Today’s order (Case No. U-21193) approves a settlement agreement signed by 21 organizations that intervened in the case that helps shape the future of electricity supply for 2.3 million DTE Electric customers in southeast Michigan and the Thumb. IRPs are utilities’ long-range forecasts for ensuring reliable service over the next 20 years, with specific requirements for reporting 5-, 10- and 15-year projections. IRPs were established under Michigan’s 2016 energy laws and are required for each electric utility whose rates are regulated by the MPSC.

Among the highlights of the settlement agreement, DTE Electric will:

  • Retire its Monroe Power Plant units 3 and 4 by Dec. 31, 2028, and units 1 and 2 by Dec. 31, 2032.
  • Convert its Belle River Power Plant in St. Clair County from a coal-fired 1,270 megawatt (MW) baseload plant to a natural gas peaker plant used less frequently for times of highest demand for electricity. The company also will retire its diesel-fueled River Rouge and St. Clair peaker plants in 2024. Today’s order includes preapproval of $125 million in costs for the Belle River plant conversion in 2025-26.
  • Accelerating development of renewable energy projects targeting additions of 600 MW per year in 2026, 2027, and 2028, and 1000 MW per year in 2029 and 2030, with approximately 30% to be sourced through power purchase agreements. The company aims to add more than 15,000 MW of solar and wind energy generation in Michigan.
  • Accelerating development of electricity storage, targeting additions totaling 230 MW in 2025, 120 MW in 2027, and 430 MW in 2028 with approximately 35% being owned by third parties. The company aims to add more than 1,800 MW of energy storage by 2042.
  • Increase its energy waste reduction target to 2% savings in 2023-27.
  • Raise its distributed generation cap to 6%.
  • Donate $38 million to organizations that provide utility bill assistance and home energy efficiency improvements for income-eligible households.
  • Disclose annually all political donations of $5,000 or more made by DTE Energy Co. beginning in 2024.
  • Develop an outreach and engagement plan for its next IRP to boost input from and participation by members of overburdened communities. DTE must file its next IRP by December 2026.

Intervenors in the case were the Michigan Department of Attorney General; Michigan Environmental Council (MEC); Natural Resources Defense Council; Sierra Club; Citizens Utility Board of Michigan (CUB); Energy Michigan; Michigan Energy Innovation Business Council; Institute for Energy Innovation; Advanced Energy Economy; Clean Grid Alliance; Soulardarity; We Want Green, Too; Ecology Center; Environmental Law and Policy Center of the Midwest; Union of Concerned Scientists; Vote Solar; Great Lakes Renewable Energy Association; Michigan Public Power Agency; Wolverine Power Supply Cooperative; Small Business Association of Michigan; International Transmission Company; Michigan Building & Construction Trades Council; Utility Workers Union of America Local 223; AFL-CIO; Association of Businesses Advocating Tariff Equity; and Enerwise Global Technologies, doing business as CPower. MPSC Staff also participated. The settlement agreement was signed by each organization except for the groups CUB, MEC, Energy Michigan, Wolverine, and ABATE, which signed a statement of non-objection.

For more information, read an issue brief on the DTE IRP settlement agreement.