DTE Energy has announced a significant settlement agreement involving nearly two dozen organizations throughout Michigan. This agreement centres around the company’s transformative CleanVision Integrated Resource Plan, which outlines a comprehensive 20-year strategy for revolutionising electricity generation.
With a strong focus on investing in Michigan’s future, DTE Energy aims to align its energy proposal with the evolving lifestyles and work patterns of its customers while fulfilling the energy needs of tomorrow. Over the course of two years, this plan has been carefully crafted, incorporating valuable input from DTE’s customers and stakeholders. The proposal propels DTE Energy’s clean energy transition by expediting investments in locally produced solar and wind energy, expediting the phasing out of coal plants, and advancing the development of new energy storage solutions. These efforts further underscore DTE’s unwavering commitment to providing cleaner energy that is both reliable and affordable.
DTE Energy chairman and CEO Jerry Norcia said: “Our CleanVision Integrated Resource Plan will end our use of coal in 2032 while developing enough Michigan-made renewables to power approximately 4 million homes.
“Today’s historic agreement is an investment in Michigan’s future, and we are grateful that 21 organisations from across Michigan have joined us in bringing our proposal one step closer to reality. This partnership and dedication have helped us build the best plan possible for our customers. We are also proud this plan puts our customers first by reducing the future costs of our clean energy transformation by $2.5bn, while reliably generating cleaner, affordable energy now, and for generations to come.”
DTE Electric has set ambitious targets to exceed its initial carbon emission reduction goals. The company now aims to achieve an 85% reduction by 2032, 90% reduction by 2040, and ultimately reach net-zero carbon emissions by 2050.
This commitment was made as part of a settlement agreement, which is subject to approval by the Michigan Public Service Commission (MPSC). The agreement was reached through collaborative discussions involving DTE Electric, MPSC staff, Michigan Attorney General Dana Nessel, environmental organizations, business and labor representatives, as well as energy industry associations
The key details of the settlement agreement are:
- Investing in clean and reliable energy:
– Developing more than 15,000MW of Michigan-made renewable energy by 2042, equivalent to powering around 4 million homes.
– Accelerating the development of energy storage, targeting 780MW by 2030 and aiming for over 1,800MW by 2042, more than doubling the current storage capacity.
– Phasing out the use of coal by 2032 through a responsible retirement schedule for the Belle River and Monroe coal power plants. This will significantly reduce coal usage from 77% in 2005 to 0% in less than three decades.
- Delivering long-term customer value:
– Investing over $11bn in the clean energy transition over the next decade, generating more than 32,000 jobs in Michigan. This investment is projected to reduce the future cost of the plan by approximately $2.5bn for customers.
– Allocating an additional $110m to support income-qualified home energy efficiency programmes, customer affordability initiatives, and access to clean energy resources for vulnerable customers.
– Repurposing the Belle River coal-fired power plant to operate on natural gas, which is more cost-effective than building a new plant. This transition will also accelerate reductions in carbon emissions. The utilization of natural gas, along with the Company’s existing Fermi II carbon-free nuclear plant, contributes to a diverse energy mix, reducing emissions while ensuring reliable and affordable energy during periods of high customer demand.
