Michigan Commission Strengthens Large Load Rules for DTE Electric, Indiana Michigan Power

The Michigan Public Service Commission on Aug. 27 approved two actions to strengthen safeguards for electricity customers as demand from data centers and other large load users accelerates: updated emergency load-shedding rules for DTE Electric and new large load tariff requirements for Indiana Michigan Power. The decisions are designed to ensure that rapidly growing electricity demand from large industrial customers does not shift costs or reliability risks onto residential and commercial ratepayers.

The regulator approved, with modifications, DTE Electric’s updated emergency procedures requiring qualifying large-load customers to be disconnected before other customers during grid emergencies when doing so would avoid broader service interruptions. The changes apply to customers beginning service after Oct. 1, 2025, with at least 500 megawatts of capacity or those served under the utility’s Large Load Provision tariff. The revisions stem from the commission’s earlier approval of a special contract for a 1,383-megawatt data center in Saline Township developed by Green Chile Ventures, an Oracle subsidiary working with OpenAI and Related Digital.

The commission determined the revised procedures comply with the earlier order authorizing the project while preserving protections intended to prevent other customers from bearing costs associated with serving the facility. It also removed language it considered redundant regarding system reliability, finding the remaining provisions sufficient to meet the commission’s objectives. Although the Michigan Department of Attorney General and the Association of Businesses Advocating Tariff Equity raised concerns about the proposal’s scope and burden on large-load customers, the regulator concluded the revisions would not affect rates or cost allocation for other customers.

In a separate order, the commission approved amendments to Indiana Michigan Power’s large-load tariff for customers using 50-megawatt or more of electricity while directing the utility to create a dedicated rate class for data centers and similarly large customers in its next general rate case.

The revised tariff includes a 15-year contract requirement, limits on load ramp-up periods, stronger early termination charges, four years’ notice for major capacity reductions, higher minimum billing requirements and increased collateral obligations. The regulator also ordered the utility to evaluate six cost allocation and rate design approaches for the future rate class and to submit an ex parte filing before each new large-load customer begins service, ensuring new projects comply with tariff requirements and do not transfer costs to existing customers.