Commission approves Consumers Energy Co. solar contracts adding 1,269 megawatts to Michigan’s electric grid

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The Michigan Public Service Commission today approved several Consumers Energy Co. contracts for a total of 1,269 megawatts (MW) of new solar capacity as the utility works to add up to 8,000 MW (Case No. U-21816) to the grid to meet renewable energy goals.

The Commission approved a 30-year power purchase agreement (PPA) between Consumers and Moonshine Solar Park LLC for the full output of the 150-MW facility in Clark County, Ill., and a 30-year PPA with Hectate Energy Sunfish Solar for its 499-MW facility in Lee and Clarence Townships in Calhoun County in southern Michigan. Consumers projects the PPA costs will be $694 million for Moonshine solar and about $2.057 billion for Sunfish Solar.

In addition, the Commission approved Consumers' application for approval of 30-year PPAs with Acceleration Solar LLC, Portside Solar LLC, Hawkeye Solar LLC and Hawkeye Solar II LLC. The PPAs are for the full output of the 90-MW Acceleration Solar Project in Ingham County, the 80-MW Portside Solar project in St. Clair County, and the 200-MW Hawkeye Solar project and 250-MW Hawkeye Solar II project, both in Clinton County, Iowa. Consumers estimates the costs of the projects at $417.1 million for Acceleration Solar, $352 million for Portside Solar, $961.1 million for Hawkeye Solar, and $1.2 billion for Hawkeye Solar II.

The approvals today help move Consumers Energy closer to meeting its share of Michigan's goal of reaching a renewable energy standard of 50% by 2030 and 60% by 2035, as outlined in the 2023 revamp of the state's energy laws.

In September 2025, the Commission approved Consumers Energy's amended renewable energy plan (REP) to reflect changes in the 2023 energy laws. The utility's REP was modified to include up to 8,000 MW of both purchased and company-owned solar energy resources consistent with Consumers' 2021 integrated resource plan, or IRP. IRPs are long-term modeling scenarios utilities must file demonstrating how they'll provide electricity to meet customer needs over the next 20 years.

MPSC DENIES CONSUMERS ENERGY'S PETITION FOR REHEARING IN ITS 2023 POWER SUPPLY COST RECOVERY RECONCILIATION

The MPSC denied a petition filed by Consumers Energy Co. for a rehearing of the Commission's December 2025 order in the utility's reconciliation of its power supply cost recovery expenses and revenues for the 2023 calendar year (Case No. U-21258). Among other things, the Commission's order in the case disallowed nearly $2.4 million in replacement power costs owing to outages at Consumers J.H. Campbell Generating Plant in West Michigan. The utility sought a $1.3 million reduction in the disallowance, arguing the Commission's order had the unintended consequence of disallowing costs for a decision the MPSC had said was reasonable. The Commission said it found no unintended consequences and that Consumers was conflating the findings in the order and denied the petition for rehearing.

COMMISSION APPROVES SETTLEMENT AGREEMENT IN DETROIT THERMAL RATE CASE

The MPSC approved a settlement agreement (Case No. U-21984) reached by Detroit Thermal LLC, the steam energy company serving major buildings in greater downtown Detroit. The utility, in its application to increase rates, projected a revenue deficiency of $4,101,762 for 2026. The settlement agreement between the utility and MPSC Staff sets base rate modifications based upon a revenue deficiency of $4,006,978. The Commission approved a return on common equity of 10.6% and a common equity ratio of 52% equity to 48% debt. New rates are effective today. No other parties intervened in the case.

MPSC DIRECTS DTE ELECTRIC TO ADDRESS MATTERS RAISED IN COMPLAINT AGAINST THE UTILITY

The MPSC today (Case No. U-21797) directed DTE Electric Co. to take steps to address issues that stem from a complaint filed by the owner of a 90-acre property in Vassar in Tuscola County where the company's tenant is a state-licensed cannabis growing facility. Vassar Acquisitions LLC filed the complaint that, among other things, disputed charges including late payment fees and unregulated non-energy services, and alleged billing errors, charges for unnecessary equipment and execution of a line agreement that Vassar argued were unlawful and unreasonable. The Commission dismissed Vassar's complaint with prejudice, finding the company failed to prove its claims. However, the Commission directed DTE Electric, in its next general electric rate case application, to provide a description of how pre-existing voltage variations influence the prioritization of subtransmission system investment and a discussion of how the utility is addressing subtransmission system areas experiencing voltage violations. The Commission also directed DTE to propose in its next rate case a line extension policy that ensures new customers connecting to the grid are paying a fair cost of connection and not causing other customers to subsidize their new service, or to justify why its current line extension policy does not cause cost shifts.

MPSC DENIES PETITION FOR REHEARING ON CONSUMERS ENERGY ELECTRIC RATE CASE

The MPSC denied a petition for rehearing of the Commission's order in Consumers Energy's most recent electric rate case (Case No. U-21870). Solar Technology LLC filed a petition for rehearing April 27, arguing that, while it agreed with the Commission's approval of a facilities allowance in this case for customers on Consumers' large economic development rate, the Commission erred by not allowing the allowance for existing customers. The Commission disagreed.

MPSC SEEKS PUBLIC INPUT ON AMENDED RULES FOR TELECOMMUNICATIONS PROVIDERS THAT CEASE SERVICE

The Commission is seeking public input on the MPSC's draft amendments to the rules and responsibilities of providers of basic local exchange phone service that cease to provide service in Michigan (Case No. U-21958). While the amended rules mainly repromulgate current rules, the amendments aim to simplify existing rules to help ensure the Commission and affected customers receive adequate notice of a company's intent to discontinue service from a wholesale provider or retail provider and that the provider complies with requirements governing discontinuance in the Michigan Telecommunications Act. The Commission encouraged interested parties to participate in the proceeding. A public hearing on the rules repromulgation will be held at 10:30 a.m. July 22, 2026, in the MPSC's Lake Michigan conference room at 7109 W. Saginaw Highway, Lansing. Interested organizations and individuals may submit comments by 5 p.m. July 29, 2026. Comments may be mailed to Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, MI 48909 or emailed to [email protected]. All comments should reference Case No. U-21958.

MPSC GRANTS INDIANA MICHIGAN POWER CO. REQUEST FOR WAIVER IN UTILITY'S NEXT INTEGRATED RESOURCE PLAN

The MPSC granted Indiana Michigan Power Co. (I&M) a waiver of some of the long-term modeling requirements in the state's updated Michigan Integrated Resource Planning Parameters, guidelines that establish what Michigan's electric utilities must consider in their required long-term modeling of future electricity demand (Case No. U-22069). Integrated Resource Plans, or IRPs, are required long-range roadmaps for utilities to demonstrate their strategies to meet the future electricity needs of customers in a cost-effective and reliable way over the next 20 years. The Commission approved the utility's request to file an alternative modeling scenario that reflects the goals of the updated planning parameters, while recognizing I&M's participation in the PJM Interconnection. I&M said it intends to file its next IRP in the first quarter of 2027.

The MPSC serves as an expert, impartial regulator committed to consumer protection, fairness and transparency. For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the MPSC on Facebook, X/Twitter, LinkedIn or Instagram.

To look up cases from today's meeting, access the MPSC's E-Dockets filing system.

Watch recordings of the MPSC's meetings on the MPSC's YouTube channel.

DISCLAIMER: This document was prepared to aid the public's understanding of certain matters before the Commission and is not intended to modify, supplement, or be a substitute for the Commission's orders. The Commission's orders are the official action of the Commission.

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