By Nick Smith
Gongwer News Service
The Department of Attorney General has filed testimony with state regulators raising concerns over a proposed large data center Google is seeking to build in Southeast Michigan, making recommendations for changes if the project is to proceed.
Concerns raised by Attorney General Dana Nessel’s office in its June 5 filing with the Public Service Commission center on protecting customers from bearing any of the costs of the proposed project.
DTE Energy Company is seeking to enter into contracts with Google to power the facility. The proposed project would be located near Interstate 94 and Haggerty Road in Wayne County, in Van Buren Township.
If constructed, the 1-gigawatt data center would contract with DTE for the provision of 2.7 gigawatts of electricity to power the facility. This power would include 1,600 megawatts of renewable energy sources and up to 450 megawatts of energy storage capacity, as well as demand response capability.
“Michiganders are already facing an energy affordability crisis and should not have to pay a single penny to service a data center,” Nessel said in a statement. “Many of these contract terms are meant to be financial safeguards against stranded assets, bad bets, and failed investments to protect both DTE and their customers over 20 years, and they need to be carefully considered.”
A key request by the department in its testimony is for the minimum monthly charges required by Google to be raised from 80% to at least 90% of their full anticipated demand. The department also called to raise proposed exit fees from the contracts.
The department stated in its testimony that the rates in the proposed contracts are not stringent enough to prevent the possibility of major stranded asset costs from occurring.
Nessel also requested that the PSC put cost tracking measures in place to make sure DTE customers are left on the hook for data center costs.
“The MPSC must ensure that ratepayers are protected and that any purported benefits from this project go toward lowering bills for families, not padding utility profits,” Nessel said.
PSC Chair Dan Scripps declined to comment following Thursday’s commission meeting on the status of the Google data center project and Nessel’s filed testimony on Thursday, saying it is an ongoing case before the commission.
As to when the matter may come before the commission, Scripps said: “I would expect that in the third quarter is when we’ll resolve that.”
He said the timing for a commission decision is based on the current case schedule.
Gongwer News Service
The Department of Attorney General has filed testimony with state regulators raising concerns over a proposed large data center Google is seeking to build in Southeast Michigan, making recommendations for changes if the project is to proceed.
Concerns raised by Attorney General Dana Nessel’s office in its June 5 filing with the Public Service Commission center on protecting customers from bearing any of the costs of the proposed project.
DTE Energy Company is seeking to enter into contracts with Google to power the facility. The proposed project would be located near Interstate 94 and Haggerty Road in Wayne County, in Van Buren Township.
If constructed, the 1-gigawatt data center would contract with DTE for the provision of 2.7 gigawatts of electricity to power the facility. This power would include 1,600 megawatts of renewable energy sources and up to 450 megawatts of energy storage capacity, as well as demand response capability.
“Michiganders are already facing an energy affordability crisis and should not have to pay a single penny to service a data center,” Nessel said in a statement. “Many of these contract terms are meant to be financial safeguards against stranded assets, bad bets, and failed investments to protect both DTE and their customers over 20 years, and they need to be carefully considered.”
A key request by the department in its testimony is for the minimum monthly charges required by Google to be raised from 80% to at least 90% of their full anticipated demand. The department also called to raise proposed exit fees from the contracts.
The department stated in its testimony that the rates in the proposed contracts are not stringent enough to prevent the possibility of major stranded asset costs from occurring.
Nessel also requested that the PSC put cost tracking measures in place to make sure DTE customers are left on the hook for data center costs.
“The MPSC must ensure that ratepayers are protected and that any purported benefits from this project go toward lowering bills for families, not padding utility profits,” Nessel said.
PSC Chair Dan Scripps declined to comment following Thursday’s commission meeting on the status of the Google data center project and Nessel’s filed testimony on Thursday, saying it is an ongoing case before the commission.
As to when the matter may come before the commission, Scripps said: “I would expect that in the third quarter is when we’ll resolve that.”
He said the timing for a commission decision is based on the current case schedule.
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