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MI — Power Infrastructure Updated January 8, 2026

Michigan

MISO Natural Gas Nuclear Solar Wind Storage Data Center PPAs Queue Bottlenecks

Overview

Michigan is in the middle of a major power transition, anchored by the restart of the Palisades nuclear plant, coal-to-gas conversions, and aggressive renewable energy targets from both DTE and Consumers Energy. The state’s two major utilities plan to add over 15,000 MW of solar and wind by 2040, while MISO’s first new interstate 345 kV lines in nearly 50 years will strengthen grid connections. Data center power contracts are now landing in Michigan, with the MPSC approving DTE’s first agreements in late 2025.

Generation Projects

Nuclear

The Palisades restart is the highest-profile project in the state. The U.S. Department of Energy approved loan disbursements toward Holtec’s effort to bring the plant back online, restoring about 800 MW of baseload power to Michigan’s grid.[3]

Natural Gas

  • DTE Belle River coal-to-gas conversion (St. Clair County): The MPSC-approved integrated resource plan (IRP — a utility’s long-term plan for meeting demand) converts the 1,270 MW Belle River coal plant into a natural gas peaker for peak demand, with preapproval for conversion costs in 2025-26.[1]
  • Consumers Energy Covert Generating Station (Van Buren County): Consumers’ IRP settlement confirmed the 2023 purchase of the Covert natural gas plant, adding 1,114 MW to MISO Zone 7 and improving southwest Michigan capacity.[2]

Solar

Both utilities are building aggressively.

  • DTE IRP renewable buildout: DTE targets 600 MW per year of renewable additions in 2026-2028, ramping to 1,000 MW per year in 2029-2030. About 30% will come through PPAs (power purchase agreements — long-term contracts to buy electricity), with a long-term target of more than 15,000 MW of solar and wind in Michigan.[1]
  • Consumers Energy solar expansion: Consumers plans for about 8,000 MW of solar by 2040, with near-term development starting in the late 2020s.[2]

Wind

DTE’s IRP targets a combined solar and wind buildout above 15,000 MW, signaling a large wind pipeline even though specific projects are not named in the order.[1]

Transmission and Grid

MISO’s Long-Range Transmission Plan (LRTP — a regional plan for new transmission lines) includes two 345 kV projects in Michigan, both managed by ITC Michigan. One line runs about 50 miles from the Michigan-Indiana border in Branch County to a new Helix Substation in Calhoun County. A second runs about 40 miles from Oneida Substation to Nelson Road Substation in New Haven Township. ITC describes these as Michigan’s first new interstate 345 kV connection in nearly 50 years.[4]

Battery Storage

Michigan utilities are adding utility-scale battery storage (BESS — battery energy storage systems) to balance renewable generation and meet peak demand.

  • DTE Trenton Channel BESS (planned, 220 MW / 880 MWh): DTE plans a standalone battery project at the retired Trenton Channel coal plant, targeting 2026 operations.[5]
  • DTE storage RFP (450 MW): DTE issued a 2025 request for proposals for about 450 MW of standalone storage in Michigan, tied to its IRP storage targets and MISO needs.[5]
  • Consumers Energy + Jupiter Power (100 MW BESS PPA): Consumers Energy signed a 100 MW battery storage PPA with Jupiter Power, one of the first utility-scale BESS contracts in the state.[6]

Data Center Power Agreements

The MPSC approved DTE Electric energy contracts for a data center in December 2025, with conditions aimed at protecting other customers. The press release does not name the customer, but it confirms large-load contracts in DTE territory.[7]

Consumers Energy’s IRP settlement includes two solicitations for 700 MW of capacity from PPAs with terms up to 10 years, creating a pathway for large buyers to contract Michigan renewables.[2]

Interconnection Queue

MISO reports queue cycles taking 3-4 years versus the one-year tariff target, with backlog and restudies delaying resource additions as load growth accelerates from large new spot loads. MISO is pursuing a queue volume cap, automation for early-stage studies, and an Expedited Resource Adequacy Study (ERAS) process to speed interconnections.[8]

What to Watch

  • Palisades restart timeline: Holtec’s progress on bringing the plant back online will determine when Michigan gets 800 MW of baseload power back on the grid.
  • DTE renewable buildout pace: Whether DTE hits its 600-1,000 MW annual targets will shape Michigan’s clean energy transition.
  • Named data center PPAs: Additional MPSC filings may reveal which hyperscalers or data center operators are contracting Michigan power.

Sources

[1] Michigan Public Service Commission, “Commission approves settlement agreement on DTE Electric Co.’s integrated resource plan,” July 26, 2023, https://www.michigan.gov/mpsc/commission/news-releases/2023/07/26/commission-approves-settlement-agreement-on-dte-electric-co-integrated-resource-plan (accessed January 8, 2026).

[2] Michigan Public Service Commission, “MPSC approves Consumers Energy integrated resource plan settlement agreement, takes additional steps to boost electric capacity,” June 23, 2022, https://mi-psc.my.site.com/sfc/servlet.shepherd/version/download/0688y000003KkKTAA0 (accessed January 8, 2026).

[3] U.S. Department of Energy, “DOE Approves Loan Disbursement for Palisades Nuclear Plant,” March 17, 2025, https://www.energy.gov/articles/doe-approves-loan-disbursement-palisades-nuclear-plant (accessed January 8, 2026).

[4] ITC Michigan, Long-Range Transmission Plan (LRTP) Fact Sheet, August 2023, https://d3u3c9e6sbajfk.cloudfront.net/wp-content/uploads/2023/10/LRTP_ITC-MI-FACT-SHEET-_Final-082523.pdf (accessed January 8, 2026).

[5] Ethan Howland, “DTE Energy seeks proposals for 450 MW of energy storage,” Utility Dive, March 18, 2025, https://www.utilitydive.com/news/dte-energy-proposals-energy-storage-michigan-miso/742819/ (accessed January 8, 2026).

[6] Cameron Murray, “Michigan utility Consumers Energy signs 100MW BESS PPA with developer Jupiter Power,” Energy-Storage.News, June 26, 2024, https://www.energy-storage.news/michigan-utility-consumers-energy-signs-100mw-bess-ppa-with-developer-jupiter-power/ (accessed January 8, 2026).

[7] Michigan Public Service Commission, “MPSC approves DTE Electric energy contracts for data center with conditions to strengthen protections for other customers,” December 18, 2025, https://www.michigan.gov/mpsc/commission/news-releases/2025/12/18/mpsc-approves-dte-electric-energy-contracts-for-data-center (accessed January 8, 2026).

[8] Midcontinent Independent System Operator (MISO), Generator Interconnection Queue Update, System Planning Committee, December 10, 2024, https://cdn.misoenergy.org/20241210%20System%20Planning%20Committee%20of%20the%20BOD%20Item%2004%20Generator%20Interconnection%20Queue%20Update665714.pdf (accessed January 8, 2026).