Michigan regulators unanimously approve DTE special contracts for proposed 1.38 GW data center amid widespread public opposition

The Michigan Public Service Commission voted unanimously Dec. 18 to approve conditional ex parte orders allowing DTE Electric Company to enter two special contracts with a proposed large data‑center customer identified in filings as Green Chili Peters LLC (also referred to in filings as Green Chili Ventures LLC). Commissioners said the contracts include provisions they believe protect other customers, while dozens of residents urged judges or lawmakers to review the decision.

The commission’s order approves a power‑supply agreement and an energy‑storage agreement intended to serve an approximately 1.383‑gigawatt data‑center load. Under the power‑supply terms summarized by staff, the customer would take service under DTE’s D11 large‑load tariff but under special‑contract terms that include a 19‑year minimum contract duration and a minimum billing demand set at 80 percent of contracted capacity. The energy‑storage agreement would fund about 1.383 gigawatts of battery installations over a 15‑year period, which staff said the customer would pay for directly; the storage is intended to provide grid benefits in addition to serving the new load.

The order imposes multiple conditions on DTE’s approval, several designed to allocate financial risk away from existing customers. Those conditions require DTE to: - certify that the special contracts and D11 terms at least cover the costs to serve the customer (generation, transmission, distribution and other costs) and file a letter within 30 days indicating whether it accepts that condition; - file within 90 days an application for a generally applicable large‑load tariff for very large customers (data centers); - include in its next rate case a cost‑allocation and rate‑design proposal ensuring interconnection costs and a proposed administrative fee for potential additional very large customers are not absorbed by other customer classes; - update its integrated resource plan (IRP), clean energy plan and renewable‑energy filings to analyze resource needs with and without the data‑center load and to show how renewable portfolio compliance costs would be allocated; - file quarterly reports beginning Dec. 31, 2026, with the customer’s load profile, operational storage capacity, demand compared to contracted capacity, changes in customer credit, and DTE’s assessment of the customer’s financial condition; and - revise emergency procedures so the data center’s load would be reduced or interrupted before involuntary interruptions to other DTE customers during an energy emergency.

The order also describes credit and collateral protections: the contracts require parent guarantees and, where appropriate, letters of credit sized to creditworthiness. Staff told the commission it reviewed unredacted contract provisions and financial models and concluded the proposed contracts would not increase other customers’ rates if the conditions are enforced.

Commissioners framed the vote as consistent with prior special‑contract approvals and with statutory and case law that allow ex parte treatment where an order will not increase rates for other customers. Commissioners emphasized they had asked staff to test assumptions, replicate modeling, and insert conditions that would hold DTE responsible for costs not recovered from the data‑center customer.

Public commenters, many from Seline/Saline Township and nearby communities, strongly objected. Speakers raised environmental concerns (wetlands disturbance, truck traffic, potential discharge of glycol), questioned the permanence and transparency of contract terms and redactions, and warned that the contracts risked long‑term costs and local impacts. Dozens of commenters asked the commission to convert the matter to a contested case, urged appeals under MCL 462.26, or called on the Legislature to limit how hyperscale customers connect to the grid.

The commission recorded a unanimous vote in favor of the order. Commissioners Dan Scripps (chair), Commissioner Peritic and Commissioner Myers each voted yes. The order’s approval was followed by an extended public‑comment period in which residents urged further review, transparency and safeguards for water, wetlands and local infrastructure.

Votes at a glance - U‑21990 (DTE special contracts for proposed ~1.383 GW data center): approved, unanimous vote (Scripps, Peritic, Myers). Conditions imposed (see above). - U‑21867 (updated IRP parameters implementing Public Acts 231 and 235 of 2023): approved, unanimous vote. Updates include environmental justice screening, affordability metrics (mitigation if energy burden exceeds 6%), labor standards and storage targets. - U‑21813 (Upper Michigan Energy Resources Corporation amended renewable plan): rejected and ordered to refile by Oct. 15, 2026; unanimous vote. - Multiple additional consent and ex parte orders (U‑21959; U‑15825; U‑18350; U‑21173; U‑21909; U‑21911; U‑21988; U‑21903): each approved by unanimous vote as listed on the agenda.

What happens next The order requires several near‑term filings and reports from DTE (a 30‑day letter, a 90‑day tariff application, amendments in the next IRP/clean energy/renewable filings, and quarterly reports beginning Dec. 31, 2026). Several public commenters and intervenors indicated they are considering legal appeals or legislative remedies.

Sources and attributions Quotes and factual descriptions in this article are drawn from commission staff presentations and the commission’s spoken deliberations during the Dec. 18, 2025 meeting; public comments are attributed to named speakers as recorded in the meeting transcript.