Consumers Energy Implements Strong Protections to Ensure Data Centers Control Energy Bills for Michigan Families

Consumers Energy has strong protections in place to ensure that growth does not increase energy bills for other customers, while data centers expect to be located in Michigan.

According to the Michigan Public Service Commission (MPSC), Michigan has the strongest protections in place for customers to ensure they do not pay for data centers. Large new energy users, including data centers, are required to pay all the costs required to serve them.

The costs include the infrastructure and energy resources necessary to power large-scale facilities. They cannot shift costs to other customers. Michigan’s framework is built around a core principle: large load customers, including data centers, should pay their own way, and are not allowed to cause other customers’ costs to increase.

“Consumers Energy is fighting for residential customers through strong protections that ensure data centers pay their share of grid costs,” said Lauren Snyder, senior vice president and chief customer and growth officer at Consumers Energy. “This investment supports Michigan’s economy and helps keep energy bills affordable for families and small businesses.”

The energy provider has taken proactive steps to support customers in the rate design process to ensure strong protections require large technology companies, like data centers, pay for their energy in a way providing benefits for all.

Customer protections include:

• Data centers should pay 100% of the energy infrastructure that their project requires, including transmission, generation, and distribution costs.
• Unlike other customers, large energy users should pay a minimum demand charge, at least 80% of their cost of service, which includes production and distribution capacity charges along with other infrastructure resources regardless of how much energy they use.
• 15-year minimum contracts are required, with financial penalties for early exit or withdrawal.
• Large users will allow the utility to spread fixed costs across a broader customer base, reducing cost pressure on all customers.

Developers looking for locations to build new digital infrastructure are interested in the Grand Rapids region. The region’s reliable electric grid, access to fiber networks, and cooler climate makes it an ideal location for data center development.