DTE Energy seeks to build efficient natgas plant in Michigan

DETROIT — DTE Energy has filed a Certificate of Necessity with the Michigan Public Service Commission (MPSC) seeking to build a state-of-the-art natural gas-fired power plant of about 1,100 MW on existing company property in East China Township, Mich., that will provide affordable and reliable power for 850,000 homes beginning in 2022.

Dte Natgas Plant Resized
Courtesy of DTE Energy.

The almost $1 B project will be built at a cost of approximately $860/kw and is scheduled to break ground in 2019, creating hundreds of Michigan jobs during construction. It is one of many steps DTE is taking to achieve its goal of reducing carbon emissions by 30% by the early 2020s and more than 80% by 2050. DTE will achieve these reductions by adding 4,000 MW of renewable energy from wind and solar farms, transitioning its 24/7 power sources from coal to natural gas, continuing to operate its zero-emission Fermi 2 power plant, and providing additional opportunities for customers to save energy and reduce bills.

A Certificate of Necessity is an application filed with the MPSC by an energy company seeking to purchase, contract for or build a power plant. This process is established by Michigan's 2008 energy law and further refined through the 2016 energy legislation.

Upon receiving the filing, the MPSC has 270 days to review DTE's request and respond.  If approved, the new gas-fired plant would be the most efficient power plant in Michigan.

Long term, DTE plans to produce over three-quarters of its power from renewable energy and highly efficient natural gas-fired power plants. DTE also will continue to reduce its energy waste annually by 1.5%.

DTE selected the East China Township site for its new natural gas plant because it already has in place electric, natural gas and other infrastructure, experienced employees and a supportive community—DTE has operated the St. Clair and Belle River coal-fired power plants there for many decades.

If approved, DTE expects plant construction to create about 500 jobs.

The new plant is scheduled to begin operation in 2022, offsetting some of the capacity retired when three of the company's Michigan coal-fired power plants—River Rouge, St. Clair and Trenton Channel—are removed from service in the 2020-2023 timeframe.

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