MPSC Approves 1,332 MW Battery Storage Projects as DTE Electric Builds Nation's Largest Utility Energy Storage Portfolio

Michigan Public Service Commission Approves Major Battery Storage Expansion

LANSING — The Michigan Public Service Commission (MPSC) has approved six energy storage projects totaling 1,332 megawatts (MW) of capacity, significantly expanding DTE Electric's energy storage capabilities and helping to improve grid reliability as the state's energy transition accelerates.

The approval comes as DTE Electric continues to meet requirements from its 2023 integrated resource plan settlement, which called for substantial additions to the state's renewable energy capacity. The new projects will bring DTE Electric's total storage capacity to 2,606 MW, making it one of the largest utility-owned energy storage portfolios in the United States.

Two Sets of Approvals

The MPSC's action addresses two separate but related needs:

Meeting Capacity Requirements

The first three energy storage projects provide a combined 1,000 MW of capacity to fulfill DTE Electric's obligations under its integrated resource plan:

• 450 MW Big Mitten Energy Center in Huron County — approved under a 20-year tolling agreement
• 350 MW Monroe I Energy Center in Monroe County — approved under a self-build contract
• 200 MW Fermi Energy Center in Monroe County — approved under a self-build contract

These projects help fulfill a settlement agreement that identified a need for at least 850 MW of new energy storage capacity to meet DTE Electric's electric capacity requirements.

The Big Mitten project involves a tolling agreement, where a third-party developer builds and operates the facility while DTE Electric pays to use its capacity. The Monroe and Fermi projects are self-build contracts, meaning DTE Electric will develop, own and operate these facilities directly.

Supporting Data Center Development

The remaining three contracts support a 1,383-megawatt data center being developed by Green Chile Ventures LLC in Saline Township, Washtenaw County:

• 132 MW Fish Creek Energy Center
• 100 MW Cold Creek Energy Center
• 100 MW Pine River Energy Center

These facilities represent the first 332 MW of the 1,383 MW of company-owned energy storage facilities that Green Chile Ventures must develop to match the data center's contracted demand.

Under the terms of the data center agreement, Green Chile Ventures will bear the costs of developing the energy storage for the project over a 15-year period. DTE Electric will develop, own and operate the facilities to benefit its grid, while Green Chile will receive market revenues from operating the facilities in the wholesale market.

Grid Reliability and Cost Benefits

Battery energy storage provides multiple benefits to the electrical grid. The MPSC noted that these systems allow the grid to store excess energy when production costs are low and release it during peak demand periods. This helps ensure grid resilience and speeds up the transition to cleaner sources of electricity.

Energy from renewable sources paired with energy storage is significantly cheaper than power produced from coal or natural gas, which reduces costs to customers according to the commission.

The capacity approved for the data center project alone is greater than that of DTE Electric's 1,150 MW Blue Water Energy Center, Michigan's most recent natural gas-fired plant, which the MPSC approved in 2018.

Safeguards Against Ratepayer Subsidization

The MPSC imposed strict safeguards to ensure residential and other customers do not subsidize the data center's costs — a key concern that had led to legal challenges of the original December 2025 approval of the data center itself.

The commission's protections include:

• The utility agreeing to be responsible for costs it is unable to recover from Green Chile Ventures
• A minimum contract duration of 19 years
• A minimum billing demand of 80% that requires the data center to pay for at least 80% of its contracted electricity use even if actual use is lower
• A termination payment of up to 10 years' worth of minimum billing demand if the facility stops operating before its contracted date

Denied Petitions for Rehearing

The MPSC also denied petitions for rehearing and motions to reopen proceedings filed by the Michigan Attorney General and environmental groups, including the Sierra Club, Natural Resources Defense Council, Michigan Environmental Council, and Citizens Utility Board of Michigan.

The commission found that the petitioners lacked standing to petition for rehearing and failed to identify errors, newly discovered evidence, facts or circumstances arising after the hearing, or unintended consequences from the commission's order necessary to justify rehearing under its rules.

The commission also denied the Attorney General's request for a contested proceeding on DTE Electric's application for approval of battery contracts related to the data center, finding that the contracts met the requirements for ex parte consideration — meaning they were reviewed without public hearing.

LED Bill Credits for Municipalities

In a separate action, the MPSC approved bill credits to benefit local governments that were early adopters of LED public lighting through DTE Electric. These early adopters paid contributions in aid of construction between January 1, 2013, and December 31, 2024, for a technology that has since become a standard, no-cost service.

DTE Electric started replacing lighting failures with LED lights at no cost to customers. In January 2025, the commission directed DTE Electric to develop the bill credits for municipal early adopters so that they are not subsidizing municipalities that waited until LED conversion became a standard service.

Broader Context

The MPSC's approval of these battery storage projects comes amid ongoing debates about the role of data centers in driving up electricity prices. Major tech companies including Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI have signed the White House's Ratepayer Protection Pledge, committing to develop, deploy, or purchase new generation resources at their data centers and cover all costs for upgrading power delivery infrastructure.

However, there is currently no way to enforce this pledge. Some lawmakers, including Representative Alexandria Ocasio-Cortez (D-NY) and Senator Bernie Sanders (I-VT), have proposed a bill to impose a nationwide moratorium on data centers, citing concerns about their impact on electricity rates.

The MPSC's decision reflects the commission's judgment that when properly structured with appropriate safeguards, energy storage can play a crucial role in grid modernization while protecting Michigan ratepayers from bearing unfair costs.

Looking Ahead

As Michigan continues its energy transition, battery storage will play an increasingly important role in integrating renewable energy sources like solar and wind into the grid. The MPSC's approval of these projects demonstrates the commission's commitment to supporting that transition while maintaining grid reliability and protecting consumers from ratepayer subsidization of large commercial and industrial facilities.

The 1,332 MW of new energy storage capacity will help DTE Electric meet its obligations under its integrated resource plan, which calls for adding 15,000 MW of solar and wind energy generation in Michigan — a significant expansion that will require substantial storage capabilities to ensure the reliability of the electrical grid.