(Source: MIRS.news, Published 07/12/23) DTE Energy has reached a settlement with multiple organizations - including some of its most vocal critics - to end its use of coal in 2032, speeding up closure and repurposing of its remaining coal power plants.
"Our customers are asking us to make sure that we're providing clean, reliable and low-cost energy on the supply side for them, and a lot of our power plants that we're retiring were built 50, 60…70 years ago. They're at their end of life," DTE Electric President Trevor Lauer told MIRS. "We also have to retire these plants and continue to build out this new generation resource."
The Integrated Resource Plan (IRP) settlement, consisting of a 20-year plan, will involve DTE Energy expediting the complete retirement of the Monroe Power Plant from 2035 (the past intended date) to 2032. The plant began operating off Lake Erie's western shore in 1971. The company plans to offer both retraining to the plant's current employees, as well as "new economic development opportunities" to the local communities that have hosted it.
Environmental groups have reported the Monroe plant to be the third-largest greenhouse gas emitter in the U.S. In 2010, the Maryland-based Abt Associates linked the plant to $73 million in chronic bronchitis expenses, $4.8 million connected to hospital admissions and $90,000 associated with 240 asthma-related emergency room visits in 2010 alone.
Another effort that Lauer described as "really cool" is the repurposing of the Belle River Power Plant in St. Clair County from coal power to natural gas. With the plant made up of two units, Lauer said one will be repurposed in 2025 and the other in 2026.
"Then they'll both burn on natural gas, as what we call a peaking plant, but here's the really cool piece about it – it'll enable us to continue to build 3,000 more megawatts of solar and wind on our distribution grid, without having any reliability issues for our customers," Lauer said. "We've studied this really carefully to make sure that by transitioning this we can continue to bring on all of these new clean energy and renewable resources."
Overall, supporters of the settlement say it would cultivate more than 15,000 megawatts of renewable energy by 2042. In a press release, the utility company stated the carbon-free generation will be equal to "powering approximately 4 million homes."
Through 2030, DTE Energy aims to have 780 megawatts of energy storage developed, and more than 1,800 megawatts developed by 2042.
"We'll now be at 85% reduction in carbon emissions by 2032, and that's well ahead of our previous stated goal of 80% by 2040," Lauer said.
When asked who's covering the $11 billion in clean energy investment affiliated with the settlement, Lauer said it will be funded both directly by DTE Energy and some third parties. He said electricity rates, electricity bills and customers themselves will not be financially affected by the settlement's objectives.
Instead, the utility company is highlighting that the 20-year plan will result in a $2.5 billion reduction in future costs.
"The build that we will do, and the purchasing we'll do will happen over the next 15 years," Lauer said. "I don't have a crystal ball of what's going to happen over the next 15 years, but what we attempted to do at DTE, and with all of the other stakeholders, was take all of the best information, and all of the best modeling, and put that forward in a way that everybody can look and say: 'I feel really good about this plan, and it's grounded in science and it's grounded in data.'"
Some of the stakeholders involved in the settlement consisted of Attorney General Dana NESSEL, staff members of the Michigan Public Service Commission (MPSC), the Natural Resources Defense Council Inc., the Environmental Law and Policy Center and the Union of Concerned Scientists.
Members of Michigan's environmental community criticized the IRP that DTE Energy proposed in 2022.
In a report card by Power Up Michigan, a congregation of "energy advocates" claimed that the utility company was overestimating renewable energy costs. They said consumers would face additional expenses if they opted into a voluntary program, contributing to the majority of the company's proposed renewable energy development.
The environmental community argued that hundreds of individuals participating in public hearings, as well as thousands of comments being submitted to the MPSC, placed "sustained pressure" for negotiations to take place.
Although MPSC staff members were involved in the settlement, the commission still needs to officially give the IRP a greenlight before actions can begin.
Lauer said he is hopeful the MPSC will view the settlement as being very positive and will approve it shortly.
