Environmental Groups File for a Contested Case Hearing on Saline Data Center
DETROIT – Sierra Club, along with other environmental and utility watchdog groups, has officially filed for a contested case hearing with the Michigan Public Service Commission (MPSC) objecting to a fast-track approval for DTE Electric’s contracts to serve a massive data center in Saline Township.
In a petition to intervene filed Wednesday with the MPSC, Sierra Club, Michigan Environmental Council, NRDC (Natural Resources Defense Council), and Citizens Utility Board of Michigan, cited concerns with DTE’s claims regarding energy costs and environmental impact related to the planned 1.4-gigawatt data center. The groups are represented by Troposphere Legal and Earthjustice.
In the filing, the groups assert that DTE has failed to support numerous claims related to purported costs and benefits of the data center project, including assurances that the massive influx in energy demand related to the data center would not increase costs to ratepayers. DTE has also failed to detail its plans to comply with Michigan’s nation-leading renewable energy standards and energy efficiency standards. In addition, DTE has redacted significant portions of the proposed contracts with the data center, thereby hiding such information from public review.
The MPSC earlier this week announced plans to hold a public comment forum on DTE's ex parte application, responding to public pressure to provide more transparency. This rushed forum—planned just two days before a previously planned MPSC meeting where DTE is reportedly pushing for a final decision—does not provide the proper forum for review on a project that would massively impact our energy grid.
“DTE and the MPSC cannot claim transparency while shutting the public out of the only process that requires DTE to support its claims with actual evidence,” said Bryan Smigielski, Michigan campaign organizer for the Sierra Club. “If the company believes these contracts won’t raise bills or accelerate fossil dependence, it should welcome a contested case where its claims can be tested. Asking Michiganders to rely on informal assurances made on behalf of massive tech corporations as data centers across the country destabilize grids, derail climate plans, and drive up costs is indefensible.”
A contested case hearing is needed in order for Sierra Club and other groups to effectively conduct discovery, evaluate DTE’s application, and advocate for Michiganders who will be directly impacted by this project.
Additional statements from Sierra Club, NRDC, and CUB:
"DTE is asking the commission to approve one of the largest energy deals in our state without providing the evidence needed to show it will not raise bills or shift major risks onto Michigan families. A project of this scale deserves a full and open review,” said Derrell Slaughter, Michigan policy director, Climate & Energy, NRDC (Natural Resources Defense Council). “A contested case gives the public and independent experts the chance to verify the costs, assess the clean energy needs, and make sure the commitments being made add up. While economic growth is good, we owe it to Michiganders to get the details right and protect ratepayers every step of the way.”
“Transparency is not optional. Under Michigan law, the MPSC cannot approve utility requests that will result in increased costs for ratepayers without giving other interested parties an opportunity to fully participate in the proceeding,” said Elena Saxonhouse, a managing attorney with the Sierra Club's environmental law program. “The MPSC risks setting a dangerous precedent allowing a rushed approval process for a data center proposal of this magnitude. With so many data center proposals on the way, and so many questions about how each project will impact already high utility bills for Michiganders, the MPSC cannot allow utilities to rush through contract approvals without scrutiny.”
"Too much is at stake in this data center case for it not to be fully contested," said Amy Bandyk, executive director of the Citizens Utility Board of Michigan. "DTE customers already pay some of the highest residential rates in the country, and this contract needs to be fully vetted to ensure it doesn't exacerbate the affordability problem."
NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).