DTE Energy to move up retirement of its coal-fired Monroe Power Plant by 3 years
Detroit-based DTE Energy Co. announced a clean energy plan Wednesday that includes moving up the retirement of its coal-fired Monroe Power Plant — one of the largest emitters of greenhouse gases in the United States — from 2035 to 2032, which the utility said will result in an 85% reduction in its carbon emissions nine years earlier than planned.
DTE said the plan, which will be submitted to Michigan Public Service Commission for approval Wednesday, accelerates investments in Michigan-made solar and wind energy, speeds up the retirement of coal plants and develops new energy storage, which can help deal with fluctuations in demand by allowing excess electricity to be saved for use during periods of higher demand.
Trevor Lauer, president and chief operating officer of DTE Electric, called the plan "historic" on a call with several news media members Wednesday morning and said the plan will drive $11 billion of investments over the next 10 years in the clean energy space.
The settlement agreement, which was two years in the making, was agreed to by parties including DTE, the MPSC, (the state agency that regulates utilities), the Michigan attorney general, representatives of Michigan’s environmental community, business and labor organizations and energy industry associations, DTE said in a news release.
With this plan, Lauer said DTE will reduce future costs to customers by a projected $2.5 billion by saving $1.4 billion by retiring the Monroe Power Plant early and a mix of tax credits for building renewable energy, reduced operating costs and reduced fuel costs associated with the closing of the plant.
The Monroe Plant, along with the Belle River Power Plant in St. Clair County, are DTE's last remaining coal-fired plants. The two produce 40% of the overall power the utility provides to its 2.3 million electric customers in southeast Michigan.
DTE also has said it plans to stop burning coal at its Belle River Power Plant, making the Monroe Plant its last remaining coal-fired power plant.
"We'll be building renewables through this whole time period," Lauer said. "We've committed to build 3,000 megawatts of renewables between now and 2030 and we'll also start building all of these energy storage resources on the grid."
Jackson-based Consumers Energy, meanwhile, said it plans to stop burning coal to generate electricity by 2025 and will rely on clean sources for 90% of its energy output by 2040.
The plan also will direct an additional $110 million to support income-qualified energy efficiency programs and customer affordability programs.
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Michigan law requires power companies to file an integrated resource plan every five years with the MPSC. DTE's next clean energy plan will be submitted by December 2026. Lauer said in that plan, the utility will take a definitive position on how to replace the power coming from the last two power-generating units at the Monroe Power Plant.
"... That'll leave us four to six years to construct what needs to be constructed and make sure that we can reliably shut those units down without sacrificing reliability for our customers," Lauer said.
Contact Adrienne Roberts: amroberts@freepress.com.
This article originally appeared on Detroit Free Press: DTE to move up retirement of coal-fired Monroe Power Plant to 2032
