Michigan energy regulators conditionally approved a request Thursday to fast-track approval of contracts to power a planned data center near Ann Arbor.
Utility company DTE Electric argued it needed quick approval to move forward with the energy-intensive project backed by tech companies OpenAI and Oracle.
Thursday’s decision takes advantage of a policy allowing projects to skip a deeper review, known as a contested case, if they won’t raise rates for other customers.
Michigan Public Service Commission chair Dan Scripps said contracts put the project on the hook for billions of dollars, regardless of if it pans out.
“This provides real protections that don’t exist in many other states to ensure that, if ultimately, this is a bubble, if this is all overblown and that the load doesn’t materialize, that again, even in that worst case scenario, customers are still protected,” Scripps said.
DTE would need to expand its energy capacity by a quarter for the data center. The project would require over a gigawatt of energy, more than an average nuclear reactor produces, according to U.S. Department of Energy estimates.
Opponents say they don’t trust that ratepayers won’t be left holding the bill. York Township resident Sarah Brabbs said no one has fully explained how the project will be held accountable.
“Who determined if that’s there. Is that there? We don’t know. But if it is, we don’t know who determined what it looks like. We don’t know who’s in charge of it. If it’s part of the dealmakers or is it someone else? What does that look like? How are you testing and making sure that they do what they say?” Brabbs said.
During the Public Service Commission meeting, attendees frequently heckled commission members. The vote faced massive backlash as attendees took issue over both environmental concerns and because the plan skipped the reviews that would’ve been part of a contested case.
Local resident Beth Foley said it was worth a deeper look.
“There is potential for egregious harm by fast tracking this with no downside in taking your time and ensuring you got it right,” she said.
The MPSC insists it did conduct a thorough review.
Commissioner Katherine Peretick said her board and their staff got to see several documents not available to the public, including unredacted versions of the contracts up for approval.
She said she was satisfied enough was there to keep Michiganders safe. Peretick argued because the companies and DTE would responsible for the infrastructure upgrades, the deal would benefit everyday ratepayers.
“The power supply agreement and energy storage agreement are well-negotiated contracts. They show a net financial benefit to DTE’s other customers of approximately $300 million per year,” she said.
