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Renewable energy

Michigan Public Service Commission Approves DTE Electric's Amended Renewable Energy Plan

Strategic Insights

— 2 min read

The Michigan Public Service Commission has issued an order approving DTE Electric Company's amended renewable energy plan, which includes a mechanism for recovering the incremental cost of compliance within its rates and a forecast of the renewable energy resources needed to comply with the new renewable portfolio standards (RPS) set forth in Public Act 235 of 2023.

The Commission approved the settlement agreement reached by the parties in its entirety, including the provision related to the calculation of incentive renewable energy credits (RECs) associated with energy storage facilities. However, the Michigan Environmental Council (MEC) has filed a petition for rehearing or clarification, arguing that the Commission erred in not including in the May 15 order the content of Paragraph 14(c)(iii) of the settlement agreement, which relates to the limitation of generation eligible for storage incentive RECs.

The Commission has reviewed MEC's petition and finds that it has not met the standard for granting a petition for rehearing. The May 15 order approved the settlement agreement reached by the parties, and the Commission's decision not to recite every term of the settlement agreement does not negate the approval or effect of any provision of the settlement agreement.

Key Takeaways:

  • The Michigan Public Service Commission has approved DTE Electric Company's amended renewable energy plan, which includes a mechanism for recovering the incremental cost of compliance within its rates and a forecast of the renewable energy resources needed to comply with the new RPS.
  • The Commission approved the settlement agreement reached by the parties, including the provision related to the calculation of RECs associated with energy storage facilities.
  • The Michigan Environmental Council has filed a petition for rehearing or clarification, arguing that the Commission erred in not including in the May 15 order the content of Paragraph 14(c)(iii) of the settlement agreement.
  • The Commission has reviewed MEC's petition and finds that it has not met the standard for granting a petition for rehearing.
  • The Commission notes that the Staff held a virtual symposium on June 5, 2025, to fulfill the terms set out in the settlement agreement, including the discussion of potential revisions to the calculation of RECs associated with energy storage facilities.
  • The Staff filed a draft report in Case No. U-15800, summarizing the discussion and indicating that a final report would be filed on September 1, 2025.
  • The Commission reserves jurisdiction and may issue further orders as necessary.

Statistics:

  • The new RPS of 50% in years 2030 through 2034 and 60% in 2035 and thereafter will require DTE Electric Company to increase its renewable energy resources to meet the new standards.
  • The settlement agreement includes a provision related to the calculation of RECs associated with energy storage facilities, which will be revisited in a draft report to be filed on September 1, 2025.
  • The Commission has approved the amended renewable energy plan, which includes a mechanism for recovering the incremental cost of compliance within its rates.
  • The Michigan Environmental Council has filed a petition for rehearing or clarification, which has been denied by the Commission.

Sources:

  • Public Act 235 of 2023
  • Public Act 342 of 2016
  • MCL 460.1022 through 460.1049
  • Mich Admin Code, R 792.10437(1)
  • Case No. U-21662
  • Case No. U-15800
  • DTE Electric Company
  • Michigan Public Service Commission
  • Association of Businesses Advocating Tariff Equity
  • Michigan Environmental Council
  • Sierra Club
  • Great Lakes Renewable Energy Association
  • Ecology Center
  • Environmental Law and Policy Center
  • Union of Concerned Scientists, Inc.
  • Vote Solar

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