Earlier this month, both Consumers Energy and DTE filed Integrated Resource Plans (IRPs). Anyone who pays a utility bill should know what’s in these IRPs. The plans lay out how the utilities will supply energy to customers (including how they will meet growing demand from data centers and treat aging fossil fuel plants) and thus have direct implications on electricity costs. 

With respect to customer-owned resources, we had previously reached out to you regarding the Michigan Public Service Commission’s (MPSC) Order warning Consumers to factor in virtual power plants (VPPs) or risk having rate hikes denied. VPPs utilize tools that are already in homes and businesses (such as rooftop solar, home batteries, smart thermostats, electric vehicles and their chargers, and more) to reduce the amount of energy needed from the grid and lower energy costs for all customers. In these most recent IRPs, both utility companies factor in VPPs to some degree, but neither appears to appropriately model the full value that these resources could provide. We plan to focus on this aspect of the utilities’ plans as the IRP cases continue.

Aside from VPPs, each utility also proposes significant investments in new renewable energy and energy storage resources. This is promising, but both utilities have still proposed to build new natural gas fired plants, and only DTE proposes longer-duration energy storage. We believe that this may be due to assumptions within the utilities’ modeling that undervalue the affordability and reliability attributes of clean energy and energy storage. Furthermore, by not taking full advantage of third-party and customer-owned resources, as well as smaller renewable energy and energy storage resources, we believe that these plans may not represent the most cost-effective options for customers. 

In the next few months, our organizations and other stakeholders will file testimony in response to both IRPs with the goal of improving them and achieving greater affordability, sustainability, and reliability outcomes. We anticipate filing testimony in early 2027 with Commission orders expected in the Summer of 2027. We will keep you updated on these matters as we progress through these cases, however, in the near-term we would be happy to chat through these topics at a high-level.  

“By including virtual power plants in their long-term planning, the utilities are taking a step toward a more innovative energy grid. VPPs are important for utility bill affordability and grid reliability and flexibility,” said Jenna Warmuth, Director at Advanced Energy United. “Despite this positive step forward, improvements should be made that focus on robust utilization of VPPs. Instead of relying on costly, outdated fossil fuel plants, the utilities should further leverage proven, affordable, and quickly deployed technologies.”

“Although we are pleased to see the proposed investments in renewable energy and energy storage, we are disappointed that neither Consumers Energy nor DTE Electric appears to be taking full advantage of low-cost, cutting edge resources,” said Dr. Laura Sherman, president of the Michigan Energy Innovation Business Council. “Customer-owned devices, third-party owned projects, small solar and storage projects, and long-duration energy storage resources can provide affordable and reliable power. We look forward to working with stakeholders, the Commission, and the utilities to improve these long-term plans.”

“Both Consumers Energy and DTE Electric are proposing significant investments in new generation and forecasting substantial load growth through 2046. To meet their rapidly growing system needs,” recommended Emily Piontek of the Clean Grid Alliance, “we encourage the utilities to re-examine these IRPs and pursue additional clean energy resources, including emerging technologies like longer-duration and multi-day storage technologies that will reach commercial status within this planning period, rather than continuing to invest in fossil-fired generation. Wind, solar, and storage are affordable, reliable, and quick to deploy.”