Ashley Siefert Nunes
LANSING, Mich.—The Michigan Public Service Commission (MPSC) received opening briefs late last week in a contested case regarding Consumers Energy’s proposal to create new requirements for data centers seeking to connect to the utility’s electricity system. Consumers, the state’s second largest electric utility, narrowly focused its application on protecting itself from stranded asset costs in the face of gigawatts of projected new demand from data centers.
The Environmental Law and Policy Center (ELPC) filed a brief on behalf of itself, the Union of Concerned Scientists (UCS), Vote Solar, and the Ecology Center detailing shortcomings in Consumers’ application, which downplays the impact of growing demand from data centers. The brief proposes steps the Commission can take to ensure data centers support, rather than undermine, Michigan's clean energy goals while protecting ratepayers from unnecessary costs. A key recommendation is that large loads provide clean energy sourcing plans and regular reporting thereof. Additional recommendations include ensuring large loads have access to the Voluntary Green Pricing program, reforming Consumers’ outdated interconnection process, and establishing a new data center-specific rate to prevent unfair cost-shifting to other customers.
Below is a statement by Lee Shaver, a senior energy analyst at UCS.
“The data centers that Consumers anticipates connecting to its grid would cause a rapid increase in energy demand that could derail Michigan’s clean energy progress and raise energy bills for millions of Michiganders. Consumers Energy’s proposal fails to fully recognize the paradigm shift that new data center loads represent, and their initial brief only engages a narrow subset of the concerns raised. A clear directive from the Commission is critical to ensure a proactive approach to new data centers that supports an affordable, clean energy future for Michigan.”
Below is a statement by Saad Siddique, an economist and analyst with ELPC.
“Many tech companies building data centers in Consumers Energy’s territory have ambitious clean energy goals. With the right incentives and guardrails, they could help advance the region’s clean energy transition. This case gives the MPSC its best chance to act now and avoid falling behind. If it waits, Consumers risks triggering rushed clean energy procurements, higher costs and greater risks for customers.”
Additional Resources:
- Expert testimony by Saad Siddique analyzing Consumers’ proposal and recommending more ratepayer protections and clean energy requirements
- UCS blog post on Michigan’s data center debate
- UCS blog post on how ratepayers get saddled with data center costs
- ELPC blog post on powering data centers with clean energy
- UCS blog post on U.S. electricity grid upgrades needed to power data center boom
- UCS blog post on the environmental impacts of data centers
If you would like to speak with Siddique or Shaver, please contact UCS Climate and Energy Media Manger Ashley Siefert Nunes at [email protected] or 952-239-0199 (cell).