Michigan Establishes New Rate for Large Energy Users Like Data Centers
LANSING, MI - The Michigan Public Service Commission (MPSC) announced a new tariff directed at new heavy energy users, such as data centers, in the Consumers Energy territory. It is the first tariff of its kind in the state.
The following is a statement from Derrell Slaughter, Michigan policy director for Climate & Energy at NRDC (Natural Resources Defense Council):
“The MPSC’s order makes strides on customer protection, ensuring that ratepayers aren’t subsidizing large customers like data centers.
The commission falls short on compliance with Michigan’s renewable and clean energy standards. Without guardrails from the public service commission order, it creates uncertainty about whether these large new customers will be powered by clean energy and ultimately help Michigan meet its clean energy goals.”
Background:
Michigan and the region are facing unprecedented electricity load growth, driven predominantly by demand from big data centers. The MPSC ruling comes months after Consumers Energy filed an application to the commission to create a new, special tariff to meet projected data center demand. In its February 2025 application, Consumers Energy said it had 15 GW of potential data center energy demand in its economic development pipeline.
The MPSC approved Consumers Energy’s new pricing apply to data centers and other customers with a minimum service threshold of 100 megawatts (MW), or aggregated loads of 100 MW with individual sites within utility’s service territory having loads of 20 MW or more with the same common owner.
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).