Michigan Attorney General Dana Nessel is pushing back against a proposed agreement between DTE Energy and Google, arguing that the current terms could leave everyday citizens footing the bill for a massive new tech facility.

Protecting Ratepayers

Nessel recently filed testimony with the Michigan Public Service Commission regarding a 20-year special contract designed to power a 1-gigawatt Google data center in Van Buren Township. The Attorney General claims the deal lacks the necessary safeguards to prevent the costs of the project from shifting onto residential customers.

“Michiganders are already facing an energy affordability crisis and should not have to pay a single penny to service a data center,” Nessel said. “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 twenty years, and they need to be carefully considered. 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.”

To better protect the public, Nessel’s office is recommending that Google be required to pay a minimum of 90% of its anticipated monthly power demand, up from the originally proposed 80%. She is also asking the commission to significantly increase the required exit fees so residents are not left paying for stranded assets if the tech giant walks away.

Additionally, the Attorney General wants strict cost tracking put in place. She argues this would ensure that any transmission upgrades required to run the data center are not subsidized by typical ratepayers, and that any financial benefits from the project actually lower residential bills instead of boosting DTE’s corporate profits.

Original reporting: Tampa Free Press — read the source article.