MPSC approves 1,000 MW of battery contracts for DTE, clears related special contracts

The Michigan Public Service Commission on March 27 unanimously approved a package of contracts that will add roughly 1,000 megawatts of battery storage capacity for DTE Electric Company and cleared related special contract applications.

Chair Dan Scripps called the order in case U-21193 and its associated approvals, which staff attorney Lisa Gold described as including tolling and equipment-supply agreements for the Big Mitten Energy Center and battery-module contracts tied to the Fermi and Monroe 1 energy storage projects. "The 3 projects, as was noted, in this order, total 1000 megawatts of battery capacity," Scripps said during deliberations.

Commissioner Peretek, who moved approval, said the contracts mark significant progress toward the state’s energy-storage goals but cautioned on an important point: through these contracts, DTE is procuring an additional 150 megawatts beyond what the utility identified in its integrated resource plan. "If it chooses not to do so and instead seeks cost recovery in a future rate case, it will bear the burden of demonstrating that those costs are reasonable and prudent," Peretek said, urging the company to assign the incremental capacity to an identified need.

The commission recorded that the approvals reflect implementation steps tied to an earlier settlement and the state’s statutory targets (referenced in the record as "Public Act 235"). Staff and commissioners noted the contracts had been reviewed by technical and legal staff and that independent monitors and competitive solicitations played roles in the procurement.

Blair Renfro later presented related items under case U-21990; the commission denied petitions for rehearing, requests to reopen the record, and motions for a contested case regarding special contracts for battery modules and approved several additional ex parte applications for projects including Coal Creek, Fish Creek and Pine River. All votes on the DTE items were unanimous.

What happens next: the orders authorize the company to proceed under the contract terms approved in the March 27 orders. Commissioners signaled they will scrutinize any future cost-recovery filings that seek to pass incremental expenses to customers and required companies to show in future filings how these procurement choices meet identified system needs.

The commission did not take additional public-action steps on allocation of the extra 150 megawatts at the meeting; commissioners said the utility would need to demonstrate reasonableness and prudence if it seeks recovery in a later rate case.