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Michigan Public Service Commission Approves Settlement Agreement for DTE Electric Company's Renewable Energy Plan

Strategic Insights

— 2 min read

On August 7, 2025, the Michigan Public Service Commission (MPSC) issued an order in Case No. U-21662, approving a settlement agreement reached between DTE Electric Company and various parties, including the Association of Businesses Advocating Tariff Equity, the Michigan Environmental Council, and the Sierra Club. The settlement agreement addresses the company's amended renewable energy plan, which includes a mechanism for recovering the incremental cost of compliance with Michigan's increased renewable portfolio standard (RPS).

The settlement agreement was filed on July 19, 2024, and was the subject of a contested case proceeding. The MPSC held prehearing conferences, evidentiary hearings, and issued a Proposal for Decision (PFD) on February 28, 2025. The parties filed exceptions to the PFD, and on May 15, 2025, the Commission issued an order approving the settlement agreement.

The Michigan Environmental Council (MEC) filed a petition for rehearing or clarification on June 4, 2025, arguing that the Commission should have considered revising the determination of incentive renewable energy credits (RECs) related to energy storage systems and hydroelectric pumped storage facilities. The MPSC denied the petition, finding that MEC had not met the standard for granting a petition for rehearing.

Key Takeaways:

  • The MPSC approved a settlement agreement between DTE Electric Company and various parties, addressing the company's amended renewable energy plan.
  • The settlement agreement includes a mechanism for recovering the incremental cost of compliance with Michigan's increased RPS.
  • The MPSC denied a petition for rehearing or clarification filed by the Michigan Environmental Council, finding that the Council had 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 discuss potential revisions to the calculation of incentive RECs associated with energy storage facilities.
  • The Staff filed a draft report summarizing the discussion, indicating that a final report would be filed on September 1, 2025.
  • The MPSC reserves jurisdiction and may issue further orders as necessary.
  • Any party desiring to appeal the order must do so in the appropriate court within 30 days after issuance and notice of the order.

Statistics:

  • Michigan's renewable portfolio standard is increasing from 15% to 60% by 2035.
  • The DTE Electric Company's amended renewable energy plan includes a mechanism for recovering the incremental cost of compliance with the increased RPS.
  • The Commission notes that the Staff held a virtual symposium on June 5, 2025, to discuss potential revisions to the calculation of incentive RECs associated with energy storage facilities.
  • The Staff filed a draft report summarizing the discussion, indicating that a final report would be filed on September 1, 2025.
  • The MPSC has reserved jurisdiction and may issue further orders as necessary.

Sources:

  • Michigan Public Service Commission. (2025, August 7). Case No. U-21662, Order Approving Settlement Agreement.
  • Michigan Public Service Commission. (2025, June 4). Petition for Rehearing or Clarification.
  • Public Act 235 of 2023.
  • Public Act 342 of 2016.
  • Mich Admin Code, R 792.10437(1).
  • January 31, 2017 order in Case No. U-17691.
  • May 15 order in Case No. U-21662.
  • Proposal for Decision (PFD) in Case No. U-21662.
  • Draft report in Case No. U-15800.

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