Saline Township
Pro-Data Center Policies
Saline Township’s approved agreements help this specific data center obtain electricity and storage, but its payments must cover the utility’s costs, and its power may be reduced before other customers’ in emergencies.
current law · Saline TownshipConditionally approves DTE Electric’s primary supply and energy storage agreements with Green Chile Ventures LLC to serve its 1.383-GW data center, on the condition that the customer’s payments cover all costs of serving it so those costs are not borne by other customers.Michigan MPSC DTE Electric Special Contracts for Saline Township Data Center, Case No. U-21990
What this means
The order conditionally approves electricity and storage agreements for this specific data center, helping it obtain service and move ahead (conditionally approved). But the utility must ensure the customer’s payments cover its costs, and in certain emergencies must reduce or shed this facility’s load before other customers’ (costs are not covered by other customers; shed firm load from the facility). Overall, it provides a meaningful but limited benefit, not a broad incentive for data centers.
People behind it
- DTE Electric Company
Filed the application seeking approval of the special contracts to serve the data center. filed an application
- Michigan Public Service Commission
Reviewed and conditionally approved DTE Electric’s application. is conditionally approved
Restrictions & requirementsHide restrictions & requirements4
Approval is conditional on the data-center customer’s payments covering all costs of serving it—including generation, transmission, and distribution costs—rather than shifting those costs to other customers. The 1.383-GW energy-storage portfolio is also to be fully funded by the customer, with project costs recovered over 15 years. Costs must be covered by the customer.
The primary supply agreement imposes a minimum billing demand of 80% of contracted capacity, which continues to apply even if the data center’s load fails to materialize. The MBD still applies if load does not materialize.
Early termination or default can trigger substantial termination payments: the order describes minimum amounts of approximately $2.3 billion under the primary supply agreement and $3.9 billion under the energy storage agreement. The stated minimum termination amounts.
During a grid emergency, after public appeals and voluntary load-reduction steps, DTE must shed firm load from the facility before shedding other customers’ firm load if the regional transmission organization directs shedding and reducing the facility’s load can protect other customers. DTE may instead arrange for required load reductions at the corresponding emergency-procedure step. The facility’s load is prioritized for shedding.
Benefits & exceptionsHide benefits & exceptions4
The Commission conditionally approved the special electricity-supply contracts through an ex parte process, without notice or a hearing, rather than requiring a contested case first. Approval is conditioned on DTE accepting that the customer or DTE—not other ratepayers—will cover the costs of serving the customer; DTE had 30 days to accept, or could seek a contested case. conditionally approved
The approved primary supply agreement provides a long-term service arrangement through February 28, 2045, with an option for two 10-year extensions. The customer’s service is under Rate D11, subject to the agreement’s terms and the Commission’s authority to adjust rates in a future rate case. two ten-year extensions
The energy-storage agreement provides for a portfolio of storage projects of up to 1.383 GW, intended to address resource adequacy for the customer’s load. The customer pays the portfolio’s costs and receives the incremental MISO market revenues from the assets, net of charging costs; each project must be submitted to the Commission for review and approval before construction. portfolio of energy storage projects up to 1.383 GW
The contract allows the customer’s load to ramp up over time, including a 12-month delay in reaching maximum load, until December 2028. 12 month delay
Sources
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