Consumers had sought to amend its long-running agreement with National Energy of Lincoln in northeast Michigan, proposing early termination of a previous amendment that had extended the PPA
for the plant’s 18 MW of electricity to 2027. The latest proposed amendment would have resulted in closure of the plant on May 31, 2024.

In June 2023 Consumers applied for a similar early termination of a PPA with Cogeneration Michigan Associates Limited Partnership’s Cadillac Plant. The new exit date would also be May 31, 2024, from July 2028.

In both cases, Consumers Energy had argued the early terminations provide several benefits, such as “an
expected reduction in cost, which will be passed on to PSCR [power supply cost recovery] customers…”.

But commissioners raised concerns about these claimed potential savings since Consumers “would turn to volatile electricity markets to replace some of the energy output and capacity lost with the shutdown of the plants.”

“The Commission found relying on unpredictable markets for replacement supply outside of a comprehensive Integrated Resource Planning process in this manner entailed an unacceptable level of risk,” MPSC said in a statement.

Consumers had proposed replacing the capacity from the Lincoln biomass plant with a 33.6 MW solar facility and the Cadillac Plant with a 67 MW solar facility. However, the utility had itself noted in testimony that given their non-dispatchable profiles, the two solar facilities would not be able to replace all the electric capacity from the biomass plants without supplemental electricity purchases.

Commissioners said that was concerning given the Midwest Independent System Operator (MISO) has warned of tightening supplies.

Regulators greenlight solar and storage projects

The Commission also approved several renewable energy and storage projects called for in the long-range integrated resource plans of two Michigan electric utilities.

Commissioners approved DTE Energy’s application to construct a 220 MW/800 MWh lithium-ion battery storage facility at the site of the former Trenton Channel coal-fired plant in Wayne County. The battery storage project is expected to cost $460 million.

The application to build the battery facility was approved the same day DTE demolished two smokestacks at Trenton Channel.

Retired in 2022, the plant was originally built to address the needs of an expanding economy post World War I and was the fourth major power plant Detroit Edison put into operation during the 1920’s. The coal-fired plant began operating in 1924.

The plant had six turbine generators with 13 coal-fired boilers. The sixth and last turbine generator arrived by 1929. At that time, Trenton Channel was the largest project Detroit Edison had undertaken. At one point, with the expansion of the plant in 1950, the facility generated 1,060 MW of energy.

At its retirement, Trenton Channel generated 535 MW.

Beyond the actions related to the Trenton Channel site, MPSC on Friday approved Consumers Energy’s application for approval of a PPA between the utility and Freshwater Solar Project, a 300 MW solar facility in Montcalm County, with a total lifetime cost of $715.7 million.

DTE is issuing a Request for Proposal (RFP) for approximately 1,075 MW of new wind and solar projects to achieve commercial operation by March 31, 2027. Proposed projects must be located in Michigan and interconnected to the Midcontinent Independent System Operator (MISO) or distribution level transmission.

DTE’s renewable energy portfolio currently includes 20 wind parks and 33 solar parks. The company plans to add 1,000 MW of new wind and solar each year starting in 2026. By 2042, DTE expects to possess more than 15,000 MW of renewable energy generation capacity.

Originally published by Renewable Energy World.

Earlier in July DTE Energy reached a proposed settlement agreement with multiple parties to end litigation over the utility’s Integrated Resource Plan.

As part of the agreement, the Michigan-based utility solidified its proposal to retire half of the Monroe coal plant 12 years earlier than previously planned and accelerated the retirement of the final two units of Monroe to 2032.

Monroe units 3 and 4 will now be retired by 2028, with units 1 and 2 closing four years later.

The Monroe plant entered service in 1971 and has a combined generating capacity of 3,400 MW.

DTE also agreed to reconfigure its Belle River coal-fired power plant to run on natural gas. Belle River Unit 1 was completed in 1984, and was followed by a similar Unit 2 in 1985. Each has a nameplate capacity of 697.5 MW. In 1999, three peaker units were added, with a total nameplate capacity of 256 MWe.

As part of the proposed agreement, the utility said it will increase its near-term investments in solar, wind, storage, and energy efficiency. It also agreed to seek approval of its next Integrated Resource Plan by December 2026, with a commitment to study an even earlier retirement of, and clean energy replacement for, the final Monroe units.

DTE also said it would direct an additional $70 million in energy efficiency funding toward programs for income-qualified customers, and retire in 2024 a gas-fired peaking unit in an environmental justice community in River Rouge.

DTE had planned to continue operating the Monroe plant until 2040. Two of Monroe’s four coal burning generating units will now retire in 2028, with the other two in 2032.

The settlement agreement will require approval by the Michigan Public Service Commission. It was reached among DTE Electric, MPSC staff, Attorney General Dana Nessel, representatives of Michigan’s environmental community, business and labor organizations, and energy industry associations.

The utility agreed to develop more than 15,000 MW of renewable energy capacity by 2042. It also said it would speed up the development of energy storage capacity, targeting 780 MWs through 2030 with a goal of more than 1,800 MW by 2042.

According to a proposed 20-year plan to be submitted to Michigan regulators, DTE Energy would move up the retirement of Belle River to 2026 from 2028. The plant would be repurposed to run on natural gas as a peaker plant to be used during periods of high demand. Unit 1 is planned to be completed by December 2025 followed by Unit 2 in December 2026.

The nearly 1,300 MW Belle River Plant is located in St. Clair County within China Township and East China Township, Michigan. Coal-fired Unit 1 was completed in 1984, with Unit 2 following in 1985. Three peaker natural-gas fired turbines were added in 1999.

The utility would retire Monroe in 2028, nearly 12 years earlier than the original planned date of 2040.

Monroe has 4 coal-fired units, each with an output of 850 MW. With all four generating units operating, the plant’s total output is around 3,300 MW. It was commissioned in the 1970s.

DTE said it modeled generation for a combined cycle natural gas-fired plant with carbon capture sequestration (CCS) or a small modular reactor (SMR) at Monroe.

To offset the coal retirements and advance decarbonization goals, DTE is proposing to add 15,400 MW of renewables and 1,810 MW of storage by 2042.

This would include:

• 5,400 MW of solar and wind, and 760 MW of storage, developed 2023-2032.

• 10,000 MW of solar and wind, and 1,050 MW of storage, developed 2033-2042.

• Adds to the 3,000 MW of existing and approved solar and wind and the 1,120 MW Ludington pumped hydro storage plant, totaling 18,400 MW of renewables and 2,900 MW of storage by 2042

By 2040, the company aims to have renewables providing 60% of its power, up from the current almost 20%. The 60% mix contributes to a 90% reduction in carbon emissions, a 10-point increase compared to its previous plan.

A 1,150 MW combined-cycle power plant began commercial operation around 40 miles northeast of Detroit.

DTE Energy’s nearly $1 billion Blue Water Energy Center broke ground in 2018. The plant represents the utility’s effort to transition its baseload power sources from coal to natural gas.

The company said it expects Blue Water to be 70% cleaner and 40% more efficient than the three coal-fired plants it is replacing.

The plant was built by Kiewit Engineering, and includes two GE H-class gas turbine and generator sets, along with heat recovery steam generators, steam turbines, and a distributed control system. The plant is expected to receive up to 80 million dekatherm of feed gas a day from a nearby Vector gas pipeline.

Other contractors included Commercial Contracting Corporation as the general contractor. MIOSHA provided construction work through a partnership agreement signed in 2019.

Flenco was subcontracted by GE to provide auxiliary systems, and Doublejack Electrical Co. installed power and lighting systems.

DTE Energy said it aims to double its renewable energy generation by 2025, while investing in hydrogen and battery storage systems. The utility has also proposed a pilot program to study the use hydrogen instead of natural gas at Blue Water Energy Center and the company’s peaker plants.

“The combination of investments in power generation assets like the Blue Water Energy Center that can run 24/7, plus the expansion of renewables, has helped us achieve a 30 percent reduction in carbon emissions, and puts us well on our way to meet our goal of 80 percent reduction by 2040, with net zero carbon emissions by 2050,” said Jerry Norcia, chairman and chief executive officer, DTE Energy.