MI — Power Infrastructure Updated 2026-07-17

Michigan

MISO Natural Gas Nuclear Solar Storage Coal Data Center PPAs Queue Bottlenecks Transmission Constraints

1. Grid operator and market structure

  • RTO/ISO coverage: Most of Michigan is in MISO. MISO Local Resource Zone 7 covers Michigan’s Lower Peninsula except the southwest corner of the state located in Indiana Michigan Power’s PJM service territory. Source: MPSC capacity demonstration materials, 2024-02-09.
  • Transmission companies: major Lower Peninsula transmission owners include ITC Transmission and Michigan Electric Transmission Company, both MISO members serving DTE and Consumers territories, respectively. Source: MPSC electric transmission companies page, 2026-06-10.
  • Market structure: Michigan has limited retail choice rather than full retail deregulation. The electric choice program permits up to 10% of retail electric sales to be purchased from alternative electric suppliers, and MPSC reported that the program remained fully subscribed in 2025 with about 5,101 customers in the queue as of December 2025. Sources: MPSC Electric Choice 10% Cap Data, 2026-06-10, MPSC, 2026-02-02.

2. Interconnection queue (status, wait times, reforms, data center specificity)

  • MISO generation queue pressure: MISO’s public generator interconnection queue and queue-cap tracker remain the main public source for generation interconnection status, but they do not identify data-center loads. Source: MISO Generator Interconnection Queue, 2026-06-10.
  • Queue cap: MISO implemented a generator interconnection queue cap beginning with the 2025 Definitive Planning Phase (DPP) cycle and subsequent cycles. Source: MISO Generator Interconnection Queue Cap FAQ, 2026-02-01.
  • DPP-2026 status: MISO’s queue page includes a DPP-2026 Queue Cap Tracker, indicating the queue-cap process continues beyond the 2025 cycle. Source: MISO Generator Interconnection Queue, 2026-06-10.
  • Federal queue reform: FERC Order No. 2023 and Order No. 2023-A require transmission providers, including RTOs/ISOs, to adopt reforms intended to reduce interconnection backlogs and improve certainty. Sources: FERC Order No. 2023 explainer, 2023-07-28, FERC Order No. 2023-A explainer, 2024-03-21, FERC final rules page, 2024-05-16.
  • Data center-specific interconnection path: large Michigan data center loads are showing up mainly through utility tariffs, special contracts, and MPSC dockets rather than public MISO generator queue entries. Consumers’ U-21859 tariff requires case-specific filings for very large data center customers, and DTE’s U-22061 filing proposes a Large Load Provision for DTE territory. Sources: MPSC U-21859 press release, 2025-11-06, MPSC notice in U-22061, 2026-03-27.
  • FERC large-load show-cause order: on June 18, FERC directed all six RTOs/ISOs, including MISO, to justify or reform their large-load tariffs within 60 days and to file generation-adequacy reports within 30 days. The orders target study speed, transmission-cost transparency and cost shifting, co-location/behind-the-meter generation, flexible-load service, and nearby generation; the MISO-specific matter is Docket EL26-70. Source: FERC, 2026-06-18.
  • MISO large-load framework: responding to the surge of data center and other large-load requests seeking service in 18-36 months, MISO described a three-stage framework: approval within 120 days when studies and agreements are complete, flexible/curtailable transitional service while upgrades are built, and telemetry, demand response, and stability requirements for long-run operation. Some elements, including a new large-load study process, were still under development on July 17. Source: MISO, 2026-06-18.

3. Ratepayer protection (large-load tariffs, cost allocation, dockets)

  • Consumers Energy large-load tariff - Case No. U-21859: MPSC approved data-center terms for loads of 100 MW or more, including a 15-year minimum contract term, 80% minimum billing demand, ramp-up period, automatic extensions, and case-by-case ex parte filings to demonstrate other customers are not subsidizing the load. Source: MPSC, 2025-11-06.
  • DTE Electric Saline Township data center - Case No. U-21990: MPSC approved special contracts for a 1,383 MW Saline Township data center with a 19-year minimum contract duration, 80% minimum billing demand, termination payments, and utility responsibility for costs it cannot recover from Green Chile Ventures. Sources: MPSC, 2025-12-18, MPSC, 2026-03-27.
  • U-21990 rehearing and storage update: on March 27, 2026, MPSC denied petitions for rehearing and motions to reopen the Saline Township data center case; the same release states that MPSC approved the first 332 MW of customer-funded battery storage projects out of 1,383 MW tied to the Saline data center. Source: MPSC, 2026-03-27.
  • U-21990 judicial status: the Attorney General appealed the MPSC approval to the Michigan Court of Appeals on April 17, asking the court to invalidate it or remand for a contested case. The appeal did not itself vacate the contracts, so the Commission’s approval remained in place as of July 17. Source: Michigan Attorney General, 2026-04-17.
  • DTE/Google special contracts - Case No. U-22058: DTE filed an application on March 17, 2026 seeking approval of a Primary Supply Agreement and Clean Capacity Accelerator Agreement with Google. The application states the special contracts are with Google LLC. Source: DTE application in U-22058, 2026-03-17.
  • U-22058 project scale and schedule: the Attorney General’s April 1, 2026 intervention states that DTE’s application describes a Google data center at or near Van Buren Township with maximum load of about 1.0 GW, beginning service in December 2027 and reaching maximum load by December 2028; DTE proposes service under Rate Schedule D11 for 20 years. Source: Michigan Attorney General notice in U-22058, 2026-04-01.
  • U-22058 ratepayer testimony and status: on June 11, the Attorney General urged a 90% rather than 80% minimum monthly charge, stronger exit fees, and separate transmission-cost tracking, arguing the filed contracts did not adequately protect other customers. The contested case remained open through July 17. Sources: Michigan Attorney General, 2026-06-11, Open MPSC docket mirror, 2026-07-10.
  • DTE Large Load Provision - Case No. U-22061: DTE proposed a tariff provision for customers requesting incremental load greater than 100 MW at a single site, or greater than 100 MW in aggregate across multiple sites with a site average above 20 MW. The proposal includes 80% minimum billing demand, administrative fees of $100,000 below 200 MW and $250,000 at or above 200 MW, a 15-year termination fee, and collateral equal to the full termination fee. Discovery continued in July and no final Commission order had issued by July 17. Sources: MPSC notice in U-22061, 2026-03-27, Open MPSC docket mirror, 2026-07-15.
  • Governor’s requested statutory floor: the July 15 Michigan Affordable and Responsible Growth Action Plan asks the Legislature to codify minimum billing demand, termination fees, credit/collateral protections, minimum contract terms, and full cost responsibility for large data centers. The accompanying corporate pledge is voluntary and did not alter an MPSC tariff or order; Anthropic, Google, Microsoft, OpenAI, Oracle, and Verrus had signed by July 16. Sources: Governor of Michigan, 2026-07-15, Governor of Michigan, 2026-07-16.

4. Generation adequacy (major projects, storage, shortfall concerns)

  • Consumers Energy IRP - Case No. U-21090: MPSC’s 2022 approval of Consumers’ IRP settlement included retirement of the J.H. Campbell coal units in 2025, purchase of the 1,114 MW Covert gas plant, and long-term solar additions. Source: MPSC, 2022-06-23.
  • DTE Electric IRP - Case No. U-21193: MPSC’s 2023 approval of DTE’s IRP settlement included accelerated storage additions and a plan to add more than 1,800 MW of energy storage by 2042. Source: MPSC, 2023-07-26.
  • DTE 2026 storage approvals: on March 27, 2026, MPSC approved six DTE storage contracts totaling 1,332 MW; the first three projects support DTE’s IRP settlement, while the last three serve the Saline Township data center. The approvals brought DTE’s total storage capacity to 2,606 MW. Source: MPSC, 2026-03-27.
  • Palisades restart: DOE describes the Palisades restart project as an 800 MW nuclear generating station in Covert Township financed by a $1.52 billion loan guarantee, subject to NRC licensing approvals, with output expected to provide clean firm generation in MISO after restart. Source: DOE Holtec Palisades project page, 2026-06-04.
  • Saline/Stargate energy structure: Oracle’s June 1, 2026 release states that DTE will supply the Stargate campus using existing resources augmented by a new project-financed battery storage investment, and that the project is expected to generate about $300 million in grid savings for existing DTE customers. Source: Oracle, 2026-06-01.
  • Google/Van Buren clean capacity structure: Google announced that its Michigan data center will be served by 2.7 GW of new grid resources, including solar, advanced storage technologies, and demand flexibility, and said it will fully cover electricity costs and infrastructure needs. Source: Google, 2026-03-17.
  • Regional adequacy is now part of the federal large-load case: FERC’s June 18 order requires MISO and its transmission owners to report how adequate generation will be secured for existing and new large loads. This is a regional proceeding rather than a Michigan IRP decision, but it directly affects the framework within which Michigan utilities plan hyperscale additions. Source: FERC, 2026-06-18.

5. Utility load forecasts / IRPs addressing data center demand

  • DTE Saline load: MPSC and Oracle materials describe the Saline Township project as a 1,383 MW / more-than-1-GW load served by DTE under special contracts and project-funded storage. Sources: MPSC, 2026-03-27, Oracle, 2026-06-01.
  • DTE Google load: U-22058 adds a second major DTE-territory data center case, with the AG’s intervention describing a maximum load of about 1.0 GW and a ramp from December 2027 to December 2028. Source: Michigan Attorney General notice in U-22058, 2026-04-01.
  • Consumers large-load reporting: the U-21859 order requires annual reporting on aggregated large-load data, including demand, energy use, capacity changes, and exit fees, embedding data-center demand tracking into utility planning. Source: MPSC, 2025-11-06.
  • MISO 2026 long-term forecast: MISO’s April forecast projected about 22 GW of data-center demand across the MISO footprint by 2030, with 8-14 GW of the increase concentrated in 2026-2027; it estimated data centers could account for roughly one-fifth of MISO energy by 2030 and one-quarter by 2040. These are region-wide figures—not Michigan-specific values—and MISO did not publish LRZ-level forecasts because of project confidentiality. Sources: MISO Long-Term Load Forecast summary, 2026-04-13, MISO stakeholder workshop, 2026-05-29.
  • Forecast uncertainty: state-regulator and environmental-sector comments asked MISO for more granular assumptions, a lower-growth case, and clearer treatment of behind-the-meter generation. Comments noted that data-center projections had doubled since 2024 and that MISO had discussed 30%-60% of data-center load potentially being backed by onsite generation, which could overstate coincident net demand if modeled incorrectly. These are stakeholder cautions, not MISO findings or a Michigan-only forecast. Source: MISO stakeholder feedback, 2026-06-01.
  • Local utility-service constraints: post-February 2026 local actions show that electricity is not the only utility constraint; the Ypsilanti Community Utilities Authority adopted a one-year moratorium on water and sewer service commitments for data centers while capacity and environmental studies are completed. Sources: Planet Detroit, 2026-04-22, Bridge Michigan, 2026-06-01.

6. Behind-the-meter / co-location / direct PPAs

  • Current Michigan filings emphasize utility service: public MPSC actions for Consumers, DTE/Saline, and DTE/Google center on utility tariffs, special contracts, and utility-owned or utility-procured resources rather than behind-the-meter generation or FERC co-location structures. Sources: MPSC, 2025-11-06, MPSC, 2025-12-18, DTE application in U-22058, 2026-03-17.
  • Retail choice limits direct procurement: Michigan’s 10% electric choice cap and fully subscribed program limit large customers’ ability to rely on retail choice to procure power directly from alternative suppliers. Sources: MPSC Electric Choice 10% Cap Data, 2026-06-10, MPSC, 2026-02-02.
  • Federal co-location review: FERC’s June 18 MISO show-cause order expressly requires attention to co-location agreements, behind-the-meter generation, flexible transmission service, and generation electrically proximate to large loads. Accordingly, the absence of a Michigan hyperscale co-location filing is not the end of the issue; regional tariff rules were under active review as of July 17. Source: FERC, 2026-06-18.

7. Transmission constraints & planned upgrades

  • MISO LRTP Tranche 1 and Tranche 2.1: MISO’s long-range transmission plan includes Tranche 1 approved in 2022 and Tranche 2.1 approved in December 2024. Tranche 2.1 is a $21.8 billion Midwest subregion portfolio with a 765 kV backbone and projects targeted for 2032-2034 in-service dates. Source: MISO Long Range Transmission Planning, 2026-06-10.
  • Michigan-specific LRTP work: an October 2025 ITC/METC report to MPSC states that Tranche 2.1 includes about 350 new miles of 345 kV transmission and 70 miles of 765 kV transmission in Michigan, part of the regional portfolio intended to address future reliability needs. Source: ITC/METC report to MPSC, 2025-10-03.
  • DTE data center-driven distribution/transmission cost allocation: U-22061 is the key post-February DTE large-load tariff proceeding to watch because it would standardize minimum billing, collateral, administrative-fee, and termination-fee protections for loads above 100 MW in DTE territory. Source: MPSC notice in U-22061, 2026-03-27.
  • Regional large-load transmission reforms pending: FERC required MISO to address study processes, transmission-cost allocation and transparency, flexible service, and co-located/proximate generation in Docket EL26-70. MISO’s stated framework relies on expedited resource and project reviews plus a new large-load process still under development, so no final regional large-load interconnection rule was in effect by July 17. Sources: FERC, 2026-06-18, MISO, 2026-06-18.

Source notes / primary dockets