By Nick Smith
Gongwer News Service
A trio of environmental groups have filed briefs with the Court of Appeals, urging it to reverse a decision by state regulators to approve power supply contracts for DTE Energy Company to power the hyperscale data center in Saline Township.
In their initial brief filed with the Court of Appeals on Thursday, the groups argue that the approval of the contracts between DTE and Oracle for the 1.4-gigawatt data center which Oracle recently began construction on was unlawful.
Thursday’s filing with the court was filed by the Michigan Environmental Council, the Sierra Club Michigan Chapter and the Natural Resources Defense Council. Attorney General Dana Nessel, who filed challenges with the Court of Appeals in April, was also part of the brief.
In the filing, the groups argued that the PSC erroneously approved the contracts with Oracle for the data center on an ex parte basis, without public input.
Further, the groups contend that despite the PSC’s stance that the provisions of the contracts would project ratepayers from absorbing costs associated with the project, DTE will need to construct hundreds of millions of dollars’ worth of infrastructure to service the data center, which would mostly qualify to be recovered through utility rate increases.
The PSC in December 2025 approved the DTE contracts over objections from opponents of the projects and some Saline Township residents who have raised environmental concerns as well as objections over the possible shifting of costs for the project on to other ratepayers.
PSC members in March approved the initial battery storage facilities required under the contracts between DTE and Green Chile Ventures to develop the site.
In June, Gov. Gretchen Whitmer drew criticism for participating in the groundbreaking ceremony for the project, and in July her administration rolled out a good-behavior pledge for data center operators, which Oracle agreed to sign.
“First, the PSC found that DTE’s application met the standard for ex parte treatment under section 6a “because conditional approval of the special contracts will not result in an increase to the rates, rate schedules, or costs of service for any customers.” the groups wrote. “However, it is undisputed that DTE will initially invest hundreds of millions of dollars to serve the data center (eventually billions) and will recover those costs from all customers in rates.”
The groups further argued that the PSC found that revenues from selling power to the data center would exceed the increased costs DTE will recover in rates from its other customers.
“But the PSC made the findings about revenues in reliance on unredacted contracts and an affordability analysis undertaken by DTE that are not in the record,” the groups wrote. “Even agency decisions outside of contested cases must be based on an administrative record. The absence of evidence in the record supporting the PSC’s finding and the reliance on evidence outside the record are both legal errors.”
Jill Wilmot, DTE Energy’s director of corporate communications, in a statement said the company is reviewing the court appeal filing.
“We’re confident – and the MPSC agreed – that our energy service contracts with Oracle offer some of the best customer protections in the country,” Wilmot said. “When submitting our contracts for approval, we followed the established regulatory process, which gives the commission the authority to approve the contracts without a hearing.”
Nessel, in a statement, said it is essential to hold the PSC accountable to the law.
“Not only to protect Michigan residents and utility customers from the worst hazards posed by these DTE contracts, but to ensure every proposed massive data center contract in the future is thoroughly and fairly scrutinized,” she said in a statement. “It is my hope the court will order the MPSC to hold a full contested case over these still-secret, and likely damaging, contracts.”
Gongwer News Service
A trio of environmental groups have filed briefs with the Court of Appeals, urging it to reverse a decision by state regulators to approve power supply contracts for DTE Energy Company to power the hyperscale data center in Saline Township.
In their initial brief filed with the Court of Appeals on Thursday, the groups argue that the approval of the contracts between DTE and Oracle for the 1.4-gigawatt data center which Oracle recently began construction on was unlawful.
Thursday’s filing with the court was filed by the Michigan Environmental Council, the Sierra Club Michigan Chapter and the Natural Resources Defense Council. Attorney General Dana Nessel, who filed challenges with the Court of Appeals in April, was also part of the brief.
In the filing, the groups argued that the PSC erroneously approved the contracts with Oracle for the data center on an ex parte basis, without public input.
Further, the groups contend that despite the PSC’s stance that the provisions of the contracts would project ratepayers from absorbing costs associated with the project, DTE will need to construct hundreds of millions of dollars’ worth of infrastructure to service the data center, which would mostly qualify to be recovered through utility rate increases.
The PSC in December 2025 approved the DTE contracts over objections from opponents of the projects and some Saline Township residents who have raised environmental concerns as well as objections over the possible shifting of costs for the project on to other ratepayers.
PSC members in March approved the initial battery storage facilities required under the contracts between DTE and Green Chile Ventures to develop the site.
In June, Gov. Gretchen Whitmer drew criticism for participating in the groundbreaking ceremony for the project, and in July her administration rolled out a good-behavior pledge for data center operators, which Oracle agreed to sign.
“First, the PSC found that DTE’s application met the standard for ex parte treatment under section 6a “because conditional approval of the special contracts will not result in an increase to the rates, rate schedules, or costs of service for any customers.” the groups wrote. “However, it is undisputed that DTE will initially invest hundreds of millions of dollars to serve the data center (eventually billions) and will recover those costs from all customers in rates.”
The groups further argued that the PSC found that revenues from selling power to the data center would exceed the increased costs DTE will recover in rates from its other customers.
“But the PSC made the findings about revenues in reliance on unredacted contracts and an affordability analysis undertaken by DTE that are not in the record,” the groups wrote. “Even agency decisions outside of contested cases must be based on an administrative record. The absence of evidence in the record supporting the PSC’s finding and the reliance on evidence outside the record are both legal errors.”
Jill Wilmot, DTE Energy’s director of corporate communications, in a statement said the company is reviewing the court appeal filing.
“We’re confident – and the MPSC agreed – that our energy service contracts with Oracle offer some of the best customer protections in the country,” Wilmot said. “When submitting our contracts for approval, we followed the established regulatory process, which gives the commission the authority to approve the contracts without a hearing.”
Nessel, in a statement, said it is essential to hold the PSC accountable to the law.
“Not only to protect Michigan residents and utility customers from the worst hazards posed by these DTE contracts, but to ensure every proposed massive data center contract in the future is thoroughly and fairly scrutinized,” she said in a statement. “It is my hope the court will order the MPSC to hold a full contested case over these still-secret, and likely damaging, contracts.”
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