Michigan Attorney General Dana Nessel filed an appeal on Apr. 17 challenging the Michigan Public Service Commission’s (MPSC) conditional approval of two special contracts for a large AI data center in Washtenaw County. The contracts, between DTE and Green Chile Ventures, LLC, were approved by the Commission in December without a contested case hearing, despite repeated requests from Nessel.
The case is significant because it could set a precedent for how future data center energy agreements are reviewed in Michigan. According to Nessel, her office has sought a contested review since October but was denied each time by the Commission. “I’ve sought a contested case review of these data center contracts since they were first filed in October, and the law requires one,” said Attorney General Nessel. “The Commission ignored our request. My office petitioned for rehearing, specifically challenging their application of ex parte process, and the Commission again ignored our plea. So now our only choice, to protect the state and utility customers from the worst hazards and liabilities these contracts pose, is to challenge the Commission’s unlawful approval of these secret data center contracts in the courts.”
Nessel said she hopes that “the Michigan Court of Appeals will agree, and that the Commission’s ex parte approval of these contracts will be voided by the Court.” She argued that under state law (MCL 460.6a(3)), such approvals without hearings are only allowed if there is no increase in service costs to customers—a condition she says has not been publicly verified.
“This appeal is not just about this case, but every future data center case that comes before the Commission,” added Nessel. She said it is important for clarity from the court as more large-scale energy deals are expected with new data centers coming to Michigan.
Last month, MPSC rejected multiple motions from Nessel seeking further examination or reopening of contract reviews related to DTE’s agreements with Green Chile Ventures. The commission also denied her request for contested proceedings on additional battery storage facility contracts linked to supporting this project.
According to the official website, the Michigan Department of Attorney General advances social efforts through actions against human trafficking and support for vulnerable populations. The department also focuses on serving residents through public service initiatives according to its website. Dana Nessel serves as Michigan’s 54th attorney general according to official records, leading an office with statewide authority intended to safeguard residents as described online. In addition to legal challenges like this one, the department influenced policy by drafting Clean Slate legislation in 2019 aimed at expanding expungement opportunities across Michigan.
Nessel’s filing marks another step as legal scrutiny continues over how major utility agreements are handled behind closed doors—an issue likely affecting both current ratepayers and future infrastructure projects.