DTE Energy agrees to 7 changes centered around reliability, cost, coal use, transparency - WDIV ClickOnDetroit
DTE Energy agrees to 7 changes centered around reliability, cost, coal use, transparency
DETROIT – DTE Energy has agreed to make seven changes centered around reliability, cost, environmental standards, and transparency after Michigan’s attorney general called for improvements.
“This tentative settlement is a win for Michigan ratepayers,” Michigan Attorney General Dana Nessel said. “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.”
DTE filed the settlement agreement in the Integrated Resource Plan case that’s in front of the Michigan Public Service Commission. IRPs are filed at least every five years to create a projection of a utility’s plan for the near future.
Nessel’s office called on the company to improve service reliability, affordability, and accountability.
The MPSC is expected to consider the proposed settlement at its next meeting, Nessel said.
Here are seven highlights of the settlement, according to Nessel’s office:
Coal use
DTE Energy has agreed to end its use of coal to generate electricity in 2032, which is almost 10 years earlier than previously planned.
The Monroe coal plant -- which is the fourth-largest coal-fired power plant in the United States -- will be closed at that time. That plant is considered the third-largest polluter in the country, based on carbon dioxide emissions.
Closing the plant earlier will result in 21.2 fewer tons of carbon being released into the air, according to Nessel.
Affordability
Customers will save more than $100 million by securitizing at a lower rate over $1 billion in early retired coal plant assets and reducing the return on equity on the current coal plants.
Low-income customers
DTE Energy has agreed to donate $38 million to help make services affordable for low-income customers.
Of that total, $8 million will go toward energy efficiency and renewable projects for those customers, and $30 million will go toward reducing the amount of money that’s currently owed by those customers.
Transparency in political donations
The company has agreed to “provide transparency to its political donations,” Nessel’s release said.
DTE will disclose all donations of at least $5,000 publicly each October. That includes donations made by the parent company and regulated utilities.
Apply for funding
Nessel said DTE has committed to apply for any state and federal funding that becomes available and would help retire coal plants. The net savings would be passed along to customers.
Self-owned renewable energy
DTE agreed to increase the distributed generation cap from 1% to 6%, which will give more customers the option to own their renewable energy, Nessel said.
Low-income energy waste reduction
DTE agreed to allocate at least $43.8 million to income-qualified electric energy waste reduction programs in 2024 and another $53.8 million in 2025.
This part of the settlement is designed to help customers lower their monthly electric bills and reduce carbon emissions.
Related Knowledge Center: ENERGY BASICS: fossil fuels
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