Michigan Attorney General Dana Nessel has filed a motion with the Michigan Public Service Commission, asking the agency to open a contested case to reexamine DTE Energy's "conditionally approved" contract with a proposed massive AI data center in Saline Township.
The MPSC approved the contract "ex parte," meaning outside individuals and groups were not permitted to file briefs, including objections, and take part in shaping the final contract.
Nessel said DTE Energy made changes to the language submitted by the MPSC, asking DTE to attest that it would protect residential customers from paying higher rates due to the costs of the utility's servicing of the data center.
She argues the altered language could give DTE Energy the authority to impose near-term costs on ratepayers, only fully paying for the total costs associated with the data center at the end of the 19-year contract.
“The Commission ordered a mere written representation from DTE that its existing customers would not subsidize the costs to serve this massive data center, and DTE failed to even meet that low bar,” said Nessel. “Because DTE did not accept the conditions as ordered by the Commission, by the Commission’s own order this should proceed to a contested case proceeding."
In a statement, the MPSC said the conditions it imposed on DTE Energy are "the strongest in the country," and it looks forward to reviewing the merits of the attorney general’s filing.
“The MPSC takes its consumer protection mandate seriously. The Commission and its expert staff thoroughly reviewed the data center special contracts to ensure the strongest possible safeguards against residential and other customers paying any costs associated with serving this data center, as DTE Electric Co. is bound under law to do."
DTE said it accepted the conditions outlined by the Michigan Public Service Commission "including ensuring our customers will not subsidize data center rates."
DTE is among Michigan Public's corporate sponsors.
