Michigan’s energy system is changing as DTE Electric adds more clean energy and moves away from coal-fired generation while working to keep bills as affordable as possible. Through all of that change, one thing stays the same: customers count on safe, reliable electricity every hour of every day.
Our balanced portfolio and all of the above resource approach requires strategic investments in all types of generation, including wind and solar, energy storage, nuclear, natural gas, and customer programs that save money and energy.
To support this transition, DTE is proposing to build two new, highly-efficient natural gas-fired power plants. These two plants will provide dependable, around-the-clock power that supports the entire energy system and helps ensure customers have reliable service every day of the year. These plants can respond to demand quickly and provide power whenever it’s needed, including during extreme heat, severe cold, cloudy days, or when the wind is calm.
Two proposed Michigan sites
Handy Township
Livingston County
1,400 MW
Planned generating capacity
Construction expected to begin in late 2027.
Commercial operation anticipated in late 2031.
Milan Township
Monroe County
700 MW
Planned generating capacity
Construction expected to begin in late 2028.
Commercial operation anticipated in late 2032.
DTE will own and operate both facilities. The projects are subject to required local, state and federal reviews and approvals, including review by the Michigan Public Service Commission.
Benefits for customers and communities
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- Reliable, responsive power: Combined cycle plants can operate around the clock and respond quickly as electricity needs and grid conditions change.
- Efficient generation: The combined generation process creates additional electricity from heat that would otherwise be unused.
- Local economic activity: Construction is expected to support more than 800 skilled trades jobs in Handy Township and more than 450 jobs in Milan Township while each project is under construction. Once operating, the facilities are expected to support approximately 30 to 40 full-time DTE employees each.
- Community revenue: The projects are expected to contribute significant tax revenue that can help support schools, public safety, roads, and other local services over the life of the facilities.
- Support for local businesses: Major infrastructure projects can create additional spending on goods, services, lodging and meals, while energy investments can support improvements to roads, utilities, and other community infrastructure.
Turning natural gas into generation: how it works
Building on DTE’s natural gas expertise
DTE has experience owning and operating natural gas-fired generation across Michigan. Blue Water Energy Center in East China Township began operating in 2022 as DTE Electric’s first combined cycle natural gas plant.
Take a virtual tour of the Blue Water Energy Center to see how natural gas-fired plants generate electricity.
Blue Water Energy Center, located in East China Township, MI, is a state-of-the-art natural gas-fired facility. This image is representative and does not show the final design, equipment configuration, scale or site-specific conditions for either proposed facility.
Designed to be a good neighbor
DTE will continue working with local leaders and residents as the projects move through development and review. Site design, permitting, and operating plans will focus on safety, responsible land use, and limiting impacts on nearby properties.
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- Each generating facility is expected to occupy approximately 30 acres, allowing it to produce a significant amount of electricity within a relatively compact footprint.
- Modern combined cycle equipment is designed for low noise, with noise-reduction technology incorporated to help limit impacts on nearby properties.
- Setbacks, landscaping, and other site design measures will be used to help reduce visual impacts from surrounding areas.
- Locating facilities near existing electric transmission lines and natural gas pipelines will reduce the need for additional infrastructure, help limit construction traffic, and manage project costs.
- Before construction begins, the project must complete site studies and meet applicable local, state, and federal permitting requirements.
Environmental considerations
The proposed facilities would use modern, highly-efficient combined cycle technology and advanced emissions controls. DTE’s plans include the following environmental features and requirements:
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- Combined cycle natural gas generation reduces carbon emissions by up to 60% compared with coal-fired generation.
- Emissions would be controlled using the best available technology, and each project would be designed to meet state and federal air-quality standards that protect public health and the environment.
- Combined cycle plants typically use 80% to 90% less water than coal-fired plants.
- These two facilities are planned to use air cooling, which is expected to use 95% less water than a water-cooled combined cycle design.
What happens next
DTE will continue technical studies, community engagement, and the required regulatory and permitting processes for both proposed sites. Project information, schedules, and opportunities to learn more will be updated as development moves forward.
Frequently asked questions
How many jobs will the project create?
Each project is expected to support significant skilled trades and construction workers during peak construction: more than 800 jobs in Handy Township and more than 450 in Milan Township.
Once the plants are operating, they are expected to support about 30 to 40 full-time positions, including operations, maintenance, engineering, environmental and administrative roles. Qualified local residents would be eligible to apply for available positions through DTE’s normal hiring process.
Will union labor be used during construction?
Yes, construction labor is expected to be predominantly comprised of union labor.
What should residents do if they have a complaint about noise or other impacts?
DTE plans to have a process in place to receive, review and respond to community questions and concerns. DTE is committed to working with local officials and residents to address concerns as they arise.
How will DTE respond to noise concerns from nearby communities?
Before the plants begin construction, DTE expects to complete detailed noise studies and include noise-control measures in the facility design. If noise concerns are reported after the plant begins operating, DTE would review them through its complaint-resolution process and conduct additional evaluations when appropriate. If a facility-related issue is confirmed, DTE would work to address it appropriately.
How will DTE protect the environment and air quality?
The plant would be required to meet all applicable state and federal environmental regulations. Before construction, DTE would need to obtain environmental permits and perform studies to show the facility can operate within air quality standards designed to protect public health and the environment. The facility is expected to use best available emissions-control technology and would be regulated by the Michigan Department of Environment, Great Lakes, and Energy (EGLE).
How will wildlife, wetlands, and natural areas be protected?
Environmental studies will be completed before the project moves forward. These studies will evaluate wetlands, wildlife habitat, stormwater management and other natural resources. If impacts are identified, DTE would work to avoid, minimize or mitigate them through measures such as habitat restoration, wetland protection and other environmental safeguards that meet state and federal requirements.
How much water will the plant use, and where will that water come from?
The Handy Township proposed plant is expected to use 375,000 gallons of water per day on average, with peak usage reaching approximately 595,000 gallons per day. The Milan Township proposed plant is expected to use about 188,000 gallons of water per day on average, with peak usage reaching approximately 298,000 gallons per day.
Most of this water would be used in plant operations, while only a small amount would be needed for employee restrooms and other sanitary uses. Because the plants are being designed with an air-cooled system, it will use 96% less water than traditional power plants.
We do not plan to use groundwater wells to support the Milan Township facility. Instead, the company is evaluating municipal water supply options. Water supply is still being evaluated for the Handy Township facility, including groundwater wells and municipal options. No final water source has been selected as either project’s water supplier. Any water source would require additional study, engineering and agreements before being finalized.
Will the plant affect local health and safety?
The facility would be required to comply with all federal and state environmental, health and safety regulations. Air emissions would be reviewed through the permitting process to ensure they meet standards designed to protect public health. The facility would also include multiple safety systems, emergency response plans, continuous monitoring and coordination with local emergency responders.
Will the plants have carbon capture technology?
The plants will not initially have carbon capture technology. However, both plants will be “carbon capture-ready,” which means they will be designed so carbon capture technology could be added in the future. Any future carbon capture project would require additional engineering, permitting, regulatory review and approvals before moving forward.
What does "carbon capture-ready" mean?
Carbon capture-ready means the plant would be designed to accommodate the addition of carbon capture technology. It does not mean carbon capture equipment will be installed when the plant begins operating. Any future carbon capture, transportation or storage project would go through its own review and approval process.
Will carbon dioxide (CO₂) be stored underground near the plants?
If carbon capture technology were added in the future, any transportation or geologic storage of captured CO₂ would require separate studies, permits, regulatory approvals and opportunities for public review. No storage location has been identified at this time.