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Saline Township residents expressed disappointment in the Michigan Public Services Commission's decision to grant conditional ex parte approval for DTE's special contracts with the proposed Stargate hyperscale data center. The commission voted 3-0 to grant approval, which it says puts all the risk on the shoulders of DTE customers, and not residential customers.
“These protections will ensure that Michigan is able to reap the benefits of adding a significant new energy user to the grid while keeping any related costs off the utility bills of other customers,” MPSC Chair Dan Scripps said. “In written comments filed with the Commission and at a public hearing the MPSC held Dec. 3, the MPSC heard from thousands of Michiganders concerned about the risks of higher utility bills for everyday customers and reversal of progress the state has made in decarbonizing its energy production. The MPSC shares those concerns and finds that today’s approval enacts strong protections for ratepayers against the risk of stranded costs and cost subsidization. The order shields DTE Electric customers from future price risk while supporting economic development.”
Saline Township residents who spoke during public comment after the decision didn't feel the MPSC heard or valued their concerns. Kathryn Haushalter lives less than 300 yards from the development. A veteran of the war in Afghanistan, she's filed a motion to intervene in Washtenaw County Circuit Court, seeking to block the consent judgment between Saline Township and the data center developers and landowners. Haushalter is a mother of five children.
"I know you look at facts. But this is affecting real people. And I wonder if in five years you'll come over to my house and want a drink of water for my well water?," Haushalter said to the commission. "When the power does go out and you have to shut off their power and they're running hundreds of diesel generators, are you gonna come over with a gas mask so my kids can still play outside and get fresh air? It's hurting real families. You can say and justify however you want, but I want you to remember my kids and remember me. You're hurting us. You do not serve me."
Ash Haushalter countered an MSPC statement that ex parte approval of contracts in other cases was relevant.
"All the ex parte contracts that you brought up with Fiat, Ford, and U of M, these are well-established businesses. These are not speculative startups. And they were much smaller, so that is not appropriate to compare them," he said.
He said that the MSPC decision sets a dangerous precedent.
"You have set a dangerous precedent, allowing big business to come in here and dictate what they can do on their terms, not the public's terms," he said.
Saline Township resident Beth Foley, who lives on a farm two miles away from the project, said the MPSC decision puts them on the wrong side of history.
"You have failed your state and your community. You have caved to the political pressure at the expense of the residents you were here to serve," Foley said. "It is my goal to leave the land better than I found it. That will be my legacy. That is my gift to my children. This is your legacy - a legacy of big greed, big money, intertwined with big politics."
Foley also said that fast-tracking the decision was a terrible mistake.
"There is potential for egregious harm by fast-tracking this, with no downside in taking your time and ensuring you got it right, especially for a project of this magnitude, the likes of which have never been seen in our state," Foley said.
Kelly Coleman lives two miles from the project.
"I am sorely disappointed in the commission's decision today that allows the Monopoly of DTE to override everything that is dear to us in Saline Township," Coleman said "Nothing of this magnitude has been brought to this commission before, and you should never in seven weeks have decided that this should just go through."
The MPSC decision cleared a key regulatory hurdle for the controversial data center project, a development valued at more than $7 billion. It will require 1.4 GW to power the facility, which is what it would take to power a city the size of San Franscisco or Seattle.
The primary supply agreement governs the main electric service until 2045. There is also a deal for energy storage. Electric load is expected to begin in January of 2027 and reach full capacity by December of 2027.
The MSPC emphasized that current DTE customers will be protected from risk and that added costs and financial risks will fall on DTE and its shareholders. Oracle subsidiary Green Chile Ventures LLC must pay a guaranteed level of capacity even if usage is lower than expected during the 19-year deal. If Green Chile cancels or defaults, they must pay a fee to cover stranded costs. The company must provide financial security.
There is also language suggesting residents or other customers will not subsidize to the data center. The contracts also suggest current users will see lower rates as a result.