MPSC approves siting settlement on Ingham County solar project, ensuring protections, benefits for impacted communities

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Approval marks first project to move forward under state renewable energy siting law enacted in 2023

The Michigan Public Service Commission approved a settlement agreement today permitting developer Ranger Power LLC to construct a 90-megawatt (MW) solar facility, Acceleration Solar, spanning three townships in southern Ingham County, with clearly spelled out protections and benefits for affected local communities (Case No. U-21932).

The case marks the first to appear before the MPSC under Public Act 233 of 2023, which created a state-level siting process at the MPSC for large renewable energy facilities such as solar, wind and battery storage.

The settlement was agreed to by all parties in the case: Leslie, Onondaga and Vevay townships, the developer, and MPSC Staff. Ingham County did not intervene in the case but reached a separate host agreement with Acceleration Solar under which it will also receive financial benefits resulting from the project.

The settlement agreement establishes detailed requirements for project construction, noise control, vegetative screening, lighting limitations, prompt complaint resolution, financial assurance for decommissioning, limitations on tree clearing, and more. The settlement also sets limitations on the project's footprint and rules for decommissioning of the project including removal of underground infrastructure and restoration of the land so it can be used for agriculture.

It also formalizes host community benefit payments of at least $2,000 per MW of the project and other local commitments, including additional funding for township legal expenses, drain maintenance, and local fire personnel and first-responder training. The Company also agreed to execute a project labor agreement or collective bargaining agreement with one or more labor organizations for the project construction and maintenance work to be performed.

Construction is expected to begin in 2027 and commercial operation in 2028. The MPSC and the townships will monitor construction and operation of the project to ensure compliance, with required reports submitted to the Commission and townships. That includes annual reports on energy production, complaints, maintenance, and financial assurance through the life of the project.

Additional information and background about the project is available in the MPSC's Acceleration Solar issue brief.

MPSC APPROVES INDIANA MICHIGAN POWER CO. AMENDED DATA CENTER TARIFF, DIRECTS UTILITY TO ESTABLISH NEW TARIFF IN NEXT RATE CASE

The MPSC today approved amendments to Indiana Michigan Power Co.'s (I&M) large electric load tariff to accommodate data centers and other very large energy users until the utility presents a standalone rate category for very large electricity users in its next general rate case (Case No. U-21986). The Commission permitted I&M to amend its large load tariff, or Tariff LP, to allow for large load customers drawing 50 megawatts (MW) or more of electricity. Among other modifications, the amendments include requiring a contract term of 15 years with a maximum 5-year period to ramp up to its full load; early contract termination fees should a customer permanently close, take service from an alternative electric supplier or reduce contract capacity more than 10%; requiring 4 years of notice if the customer plans to reduce capacity more than 10%; a 90% monthly minimum billing demand and 65% monthly minimum energy requirement; and increased amounts of upfront collateral. The protections are designed to prevent costs from being shifted to other customers. The Commission required I&M to propose a standalone large load rate specifically for data centers and similarly large users in the utility's next general rate case, along with a requirement for I&M to model six different cost allocation and rate design models. The Commission also required an ex parte filing before each new customer takes service to demonstrate compliance with tariff requirements and to ensure costs to serve new large load customers are not being subsidized by other customers. The Commission notes it could transition such matters to contested cases if appropriate. Intervenors in the case were the Michigan Department of Attorney General; Association of Businesses Advocating Tariff Equity; Ecology Center; Environmental Law & Policy Center; Union of Concerned Scientists, and Vote Solar. MPSC Staff also participated.

COMMISSION SEEKS COMMENT ON PROPOSED REVISIONS TO CLEAN ENERGY COMPETITIVE PROCUREMENT GUIDELINES

The Commission today announced it is seeking comment on proposed revisions to competitive procurement guidelines for clean energy resources (Case No. U-20852). The Commission in April 2026 directed MPSC Staff to convene a workgroup to review and revise competitive procurement guidelines to help ensure third-party resources are properly and fairly considered in the competitive procurement of renewable energy projects to meet the state's increasing renewable portfolio standard. After a collaborative process, Staff filed a revised draft of the competitive procurement guidelines. The Commission last adopted updates to competitive bidding guidelinesin 2021 meant to encourage fair, transparent and nondiscriminatory processes for utilities to use when seeking competitive bids for new energy resources, to reduce costs and maximize value for customers. Any organizations or individuals interested in commenting may do so by 5 p.m. Oct. 1, 2026, with reply comments due by 5 p.m. Oct. 16, 2026. Written comments may be mailed to Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, Michigan 48909, or submitted via the Commission's E-Dockets website or by email to [email protected]. All comments must reference Case No. U-20852.

MPSC OKs DTE ELECTRIC SOLAR PROJECT SERVING FORD MOTOR CO.

The MPSC approved an ex parte application from DTE Electric Co. for approval of its Northwood Solar Park Project, related contracts, and the Commission's finding that the project and contracts are consistent with the utility's renewable energy plan (Case No. U-21285). The Commission previously has allowed DTE Electric customers to request renewable energy projects specific to their needs in the utility's MIGreenPower voluntary green power program, and DTE Electric and Ford Motor Co. entered into a special contract to build up to 675 megawatts (MWs) of solar power projects to serve the automaker, which represents the largest renewable energy contract between a utility and one of its customers in U.S. history. Today's order approves the 125-MW Northwood project in Saginaw County, with an expected commercial operation date in late 2028, as well as the engineering, procurement, and construction master service agreement with J. Ranck Electric Inc. and master supply agreements for solar panel modules with New East Solar Energy (America) Inc and Canadian Solar USA Inc.

MPSC APPROVES CONSUMERS ENERGY'S TRUE-UP OF SURCHARGES FINANCING LOW-INTEREST DEBT FOR EARLY RETIREMENT OF COAL PLANTS

The Commission approved Consumers Energy's application for approval of its annual routine true-up of customer surcharges that service low-interest securitization bonds issued to cover costs mainly for the early retirement of the utility's Karn 1 and 2 coal-fired generating units on Saginaw Bay in Bay County (Case No. U-20889). The bonds for up to $688.3 million were issued to save about $126 million in customer costs through lower-cost debt. For the period from October 2026 through September 2027, Consumers' proposed surcharges result in a total securitization surcharge to collect $116,212,716.

MPSC REMANDS DISPUTE OVER NATURAL GAS TREATMENT FEES TO BEGIN CONTESTED PROCEEDING, FINDING COMMISSION HAS JURISDICTION

The Commission remanded a dispute over gas treatment agreements back to the administrative law review process as a contested matter after an earlier proposal for decision in the case had determined the MPSC lacked jurisdiction in the case (Case No. U-21938). The Commission found that it does have jurisdiction in the matter, involving a dispute filed by northern Michigan natural gas companies Jordan Development Co., Muzyl Oil Corp., and NuEnergy LLC against Phillips 66 Co, and DCP Michigan Pipeline & Processing LLC. Petitions to intervene in the case filed by Muskegon Operating Co. LLC, VCP Michigan LLC, Lambda Energy Resources LLC, and Core Antrim Co. LLC, rejected as moot earlier in the case, were ordered to be reconsidered as a result.

MPSC APPROVES DTE ELECTRIC CO. EMERGENCY PROCEDURES FOR DATA CENTERS AND OTHER LARGE-LOAD CUSTOMERS, WITH MODIFICATIONS

The MPSC approved, with modifications, an application from DTE Electric Co. to update its emergency electric procedures in section C3 of the utility's rate book to ensure that the electric load of a 1,383-megawatt (MW) data center in Saline Township and other large-load customers is shed before other customers in case of an emergency (Case No. U-22059).The Commission in 2025 approved DTE Electric's special contract to serve the data center with some of the nation's strongest customer protections preventing other customers from bearing costs associated with the project. The project was developed by Green Chile Ventures LLC, a subsidiary of Oracle Corp. in partnership with Open AI and Related Digital. The Commission's approval included directing DTE Electric to update its emergency electric procedures with the new load-shed requirements for large load customers including data centers. The Commission approved changes to DTE Electric's rate book so that customers that take service from the utility after Oct. 1, 2025, with at least 500 MWs of capacity or customers that take service under DTE Electric's Large Load Provision of Rate Schedule No. D11 will now be subject to firm load shedding prior to other customers, provided that it would prevent firm load shedding for other DTE Electric customers. The Commission declined to approve language it determined was redundant and unnecessary regarding system reliability. The Commission found that the changes comply with its order approving the data center contract in Case No. U-21990 and will not impact rates or costs of service to other customers, and therefore ex parte approval was appropriate. The Michigan Department of Attorney General filed comments expressing concerns about the changes, and the Association of Businesses Advocating Tariff Equity filed comments claiming the proposed changes created an unreasonable and unnecessary burden on large load customers that wasn't intended by the Commission's order approving the data center.

The MPSC serves as an expert, impartial regulator committed to consumer protection, fairness and transparency. For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the MPSC on Facebook, X/Twitter, LinkedIn or Instagram.

To look up cases from today's meeting, access the MPSC's E-Dockets filing system.

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DISCLAIMER: This document was prepared to aid the public's understanding of certain matters before the Commission and is not intended to modify, supplement, or be a substitute for the Commission's orders. The Commission's orders are the official action of the Commission.

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