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Michigan Regulators Approve Strict Tariff for 100‑MW Data Centers on Consumers Energy

Officials say the framework shifts interconnection and exit risks to developers to protect other customers.

Overview

  • The Michigan Public Service Commission voted 3–0 on Nov. 6 to amend Consumers Energy’s GPD tariff for customers with loads of at least 100 megawatts, including aggregated portfolios with individual sites of 20 MW or more.
  • Approved terms include minimum 15‑year contracts with up to a five‑year ramp, monthly billing at 80% of contracted capacity, a $100,000 proposal fee, collateral equal to half of the exit fee, and sizable penalties for early termination.
  • Consumers must file for approval before serving each large‑load customer and show that transmission, substation, and other interconnection costs caused by the project will not be paid by other ratepayers.
  • The commission characterized the order as enabling data center growth while safeguarding ratepayers, and environmental groups criticized the lack of explicit renewable sourcing requirements even as state law targets 100% clean energy by 2040.
  • Separately, DTE sought expedited approval of a draft 19‑year contract for the proposed Stargate data center and disclosed roughly $500 million in transmission and substation upgrades, a request opposed by the Michigan Attorney General and environmental advocates who want a full review.