November 06, 2025
LANSING, MI — The Michigan Public Service Commission (MPSC) issued an order on Consumers Energy’s proposal for how to serve large-load customers in its service territory. The decision will help ensure data centers pay their fair share but leaves clean energy opportunities largely unaddressed.
In the proceeding, Consumers Energy outlined how it planned to manage new large-load customers. The Clean Energy Organizations (CEOs), a coalition including the Ecology Center, Environmental Law & Policy Center, the Union of Concerned Scientists, and Vote Solar, intervened in the case to urge the Commission to adopt stronger safeguards that ensure new data center growth drives clean energy investment and does not raise rates for Michiganders.
In its order, the MPSC adopted the CEOs suggestion to create a new filing for new large-load customers requiring detailed information on how Consumers plans to provide generation, storage, or other resources to serve their load. The Commission also required Consumers to discuss voluntary green pricing program (VGP) options with prospective large-load customers and model a large-load rate class that ensures these customers pay their fair share of system costs.
While we are pleased with the progress on consumer protection, the order delays addressing renewable energy requirements for new data center loads. This could jeopardize Consumers Energy’s compliance with its renewable energy requirements, leading to rushed procurements, higher costs, and greater risks for Michigan customers down the road.
Daniel Abrams, Senior Associate Attorney with ELPC, said: “We’re disappointed that the Commission fell short in endorsing and promoting renewable energy at the outset of these data center contracts. While the order includes important consumer protection terms, the Commission missed an opportunity to emphasize the importance of the state’s climate goals.”
Lee Shaver, Senior Energy Analyst with the Union of Concerned Scientists, said: “The Commission missed an opportunity to reform the load interconnection process from first-come, first-served to a more nuanced approach that takes the impact of large loads seriously. Just as generators follow a process that accounts for their unique attributes, so should large loads. The process should prioritize flexible loads and customers that bring their own renewable energy. By taking these factors into account, the interconnection process can ensure a clean, reliable, and more affordable electricity system.”
Charles Griffith, Climate and Energy Program Director at the Ecology Center, said: “The Commission’s directive to model the incremental cost impacts of data center load ensures that these large customers pay their fair share of interconnection costs while providing transparency and clarity for all ratepayers. It equips staff, policymakers, and stakeholders with the information needed to identify and address any hidden or unfair charges, supporting fair and responsible energy planning.”
Will Kenworthy, Midwest Regulatory Director for Vote Solar, said: “Now that the Commission has approved the underlying interconnection tariff, it’s critical that new data centers bring additional clean energy to Michigan’s generation portfolio—not just more load. The order rightly directs Consumers to discuss voluntary green pricing options with prospective large-load customers, and that program offers a ready pathway to ensure that data center growth directly supports new renewable energy development across the state—without compromising affordability or reliability for Michigan ratepayers.”