Transformational plan projects $2.5 billion in reduced future costs to customers while building enough Michigan-made renewables to power ~4 million homes
Last fall, DTE unveiled its CleanVision Integrated Resource Plan, a 20-year proposal to dramatically transform how the Company generates electricity as part of its mission to invest in the future of Michigan, with an energy plan that adapts to how you live and work today while meeting the energy demands of tomorrow. Developed over the past two years with the input of DTE’s customers and stakeholders, this proposal continues DTE’s clean energy transition by accelerating investments in Michigan-made solar and wind energy, speeding up the retirement of coal plants, and developing new energy storage – all reinforcing DTE’s commitment to cleaner energy generated reliably and affordably.
DTE recently announced 21 organizations from across Michigan signed onto a settlement agreement to the Michigan Public Service Commission (MPSC) for this plan. This plan puts DTE’s customers first by reducing the projected costs of the Company’s clean energy transformation by $2.5 billion, while reliably generating cleaner, affordable energy now, and for generations to come.
Thanks to this agreement, DTE Electric will target surpassing its previously announced carbon emission reduction goals – achieving 85% in 9 years (2032), 90% by 2040, and net zero carbon emissions by 2050. This settlement agreement, which will require approval by the MPSC, was reached between DTE Electric, MPSC staff, Attorney General Dana Nessel, representatives of Michigan’s environmental community, key business and labor organizations, and energy industry associations. Key details of this agreement include:
- Investing in clean and reliable energy by:
- Developing more than 15,000 megawatts of Michigan-made renewable energy by 2042. This carbon-free generation is the equivalent to powering approximately 4 million homes.
- Accelerating the development of battery storage, targeting 780 megawatts through 2030 – reinforcing DTE’s commitment to clean and reliable energy with a goal of more than 1,800 megawatts of storage by 2042 – more than doubling current storage capacity.
- Ending DTE’s use of coal in 2032 with a responsible, phased retirement schedule of the Belle River and Monroe coal power plants – dramatically reducing the Company’s use of coal from 77% in 2005 to 0% in less than three decades.
- Through this agreement, the Company has further accelerated the full retirement of the Monroe Power Plant from 2035 to 2032.
- Targeting 2% energy savings level from energy efficiency through 2027.
- Supporting increased distributed generation on the Company’s distribution system.
- Delivering long-term customer value by:
- Investing over $11 billion into the clean energy transition over the next 10 years, supporting more than 32,000 jobs in Michigan, while reducing the future cost of the clean energy transition for customers by a projected $2.5 billion.
- Directing an additional $110 million to support income-qualified home energy efficiency programs, customer affordability programs and access to clean energy resources for the most vulnerable customers.
- Repurposing the Belle River coal-fired power plant to run on natural gas at a fraction of the cost of building a new power plant while accelerating reductions in carbon emissions. Natural gas, and other 24/7 resources like DTE’s existing carbon-free nuclear plant, play an important role in a diverse energy mix and will significantly reduce emissions while providing reliable and affordable energy to meet periods of high customer demand.
DTE is committed to providing what customers related was most important: a plan that is reliable, affordable and clean. And DTE’s plan strikes that balance. It will help prepare Michigan for future energy demands, like transportation electrification, increasingly severe and unpredictable weather, and the fast-evolving needs of the customers and communities the Company proudly serves.
