The Michigan Public Service Commission (MPSC) has approved Consumers Energy’s revised service terms for data centers and other large electricity users to ensure that regular customers do not subsidize them, according to a press release.

The new rules apply to users with at least 100 MW of load, or to combined sites under one owner totaling 100 MW, with each site using at least 20 MW. Contracts run for 15 years, require a minimum billing demand of 80%, allow a five-year ramp-up, and automatically renew every five years unless the customer gives four years’ notice to terminate.

Large users who end service early must pay an exit fee equal to their minimum monthly bill multiplied by the remaining months on the contract. They must also provide collateral equal to half the exit fee, which decreases over time. Customers may request a one-time capacity reduction of up to 10% with four years’ written notice, and Consumers Energy may suspend service if a user exceeds its contracted capacity.

Consumers Energy must submit cost and rate studies to prove there is no cross-subsidization and file annual reports detailing usage, capacity changes, and exit fees. Each large-load customer must have a separate ex parte filing demonstrating no additional cost to other ratepayers.

The MPSC also approved Consumers Energy’s purchase of the 200 MW 45th Parallel Solar Project in Otsego County for USD 436m, with the project expected to begin operation on December 31, 2027. In addition, the Commission cleared two 15-year power purchase agreements (PPAs) with Pivot Energy for a 3 MW project in Calhoun County and a 2 MW project in Mecosta County.

The Commission invited public comments until December 8, 2025, on power supply cost recovery transfer prices and on-peak hour definitions for incentive renewable energy credits.

The MPSC also approved DTE Electric’s request to record USD 19m in deposits made to the bankrupt supplier Powin LLC as a regulatory asset for its Trenton Channel Energy Center projects. DTE signed a new supplier contract valued at USD 30m in added customer benefits and must recover funds through bankruptcy proceedings while reporting results in its next rate case.