Michigan Attorney General Dana Nessel has filed a motion with the Michigan Public Service Commission (MPSC) to reopen the approval process for two special contracts between DTE and an anticipated hyperscale AI data center in Saline Township. Nessel claims that DTE did not fully agree to the conditions set by the Commission, which were designed to prevent existing customers from subsidizing the costs associated with servicing the data center.
The MPSC had granted conditional approval for the contracts and required DTE to submit a letter within 30 days of its December 18 order, confirming acceptance of all imposed conditions. One key condition was that payments made by Green Chile Ventures LLC, under Rate Schedule D11 and these special contracts, would cover all service costs so that no additional expenses would be passed on to other customers.
DTE responded with a letter on January 15, stating “the aggregate revenues generated by the customer [Green Chile Ventures LLC] will cover the costs to serve them.” According to Nessel, this language does not meet the requirements set out by the Commission. She argues that it could allow DTE’s current customers to bear some of these costs in the short term, as DTE only guarantees full cost coverage by the end of a 19-year contract period.
“The Commission ordered a mere written representation from DTE that its existing customers would not subsidize the costs to serve this massive data center, and DTE failed to even meet that low bar,” said Attorney General Nessel. “Because DTE did not accept the conditions as ordered by the Commission, by the Commission’s own order this should proceed to a contested case proceeding, as I have long advocated for. These contracts are simply too consequential for the future of energy affordability in Michigan to keep granting fast-track secret review and approvals to untrustworthy partners like DTE, Oracle, and OpenAI.”
Nessel has also filed a notice of intervention and requested a contested case regarding six new battery storage facility contracts proposed by DTE. She points out that these contracts lack details about their total or partial costs and argues there is insufficient information for ex parte approval.
On January 8, Nessel petitioned for rehearing in this matter. She questioned whether MPSC has statutory authority to approve such special contracts without holding a contested case hearing. She also asked for clarification on how enforceable the commission’s conditions are since they appear to require only assurances from DTE rather than binding commitments.
Nessel continues to push for contested case hearings so regulators can review redacted contract details, verify affordability claims made by DTE about ratepayer benefits, ensure no increase in electric rates for current customers, and confirm protections such as collateral and exit fees if Green Chile Ventures LLC does not fulfill its obligations.
The Michigan Department of Attorney General serves as Michigan’s chief legal office with statewide authority. The office is responsible for protecting residents through various initiatives including public service programs focused on vulnerable populations and combating human trafficking (https://www.michigan.gov/ag). Dana Nessel currently holds office as Michigan’s 54th attorney general (https://www.michigan.gov/ag).
