Michigan Commission Authorizes 797-Megawatt Expansion of DTE Electric’s Voluntary Renewable Power Program

The Michigan Public Service Commission on June 9 approved a partial settlement allowing DTE Electric Co. to increase its voluntary green pricing program by 797 megawatts from 2022-2025 and provide new program offerings to expand access for low-income customers. The voluntary program allows customers to meet a portion of their electricity needs from renewable energy resources.

The agreement combines DTE Electric’s green pricing program and renewable energy plan, with the approval of three solar power contracts to supply customers enrolled in the program. The commission approved the company’s power purchase agreement with Calhoun County Solar Project LLC and its build-transfer agreements with Freshwater Solar Holdings LLC and White Tail Solar Holdings LLC. The order allows the utility to solicit 100 MWac of small-scale solar build-transfer proposals from projects with pending interconnection applications.

The utility is authorized to launch three low-income solar pilot projects with commercial operation dates from 2022-2024, with one target project a year, and calls for the establishment of a Low-Income Solar Council to foster community involvement in project development.

The order authorizes the utility to apply a financial incentive to the voluntary green power purchase contracts based on the difference in expected customer savings from company-owned projects and power purchase agreements. The savings-based incentive will encourage the company to select lower-cost generation resources that result in savings for customers. Additionally, the plan authorizes the company to use tax equity financing for future build-transfer agreements and self-developed projects, thereby reducing costs for ratepayers.