Detroit Edison proposes renewable energy program

Detroit-based DTE Energy (NYSE: DTE), the company that owns Detroit Edison, has developed a plan to give the company's 2.2 million electric customers the option of choosing renewable energy for all or part of their electricity needs.

The proposal, filed today with the Michigan Public Service Commission, has been under development for more than a year. It is intended to encourage new renewable energy projects in Michigan, improve the environment in the state and help create a diverse energy portfolio to meet the growing demand for electricity.

"This voluntary program - called GreenCurrents - will give [Detroit Edison's] customers the ability to choose power created from wind, sun, water, biomass and other environmentally-friendly sources," said Trevor Lauer, vice president of retail marketing for DTE Energy. "For just a few dollars a month, customers can help influence the future of sustainable energy in Michigan."

Under the plan, customers can "green up" their electricity usage at a price that best fits their budget. For $2.50 a month, customers can purchase 100 kilowatt-hours of renewable energy, which represents about 15 - 20 percent of a typical home's monthly electric usage. Customers could also choose to have 100 percent of their home's electricity provided by renewable resources for an additional cost of two cents per kilowatt-hour - or about $10 to $15 per month for a typical household.

"Currently, renewable energy facilities are more costly to build, operate and maintain than conventional sources of electricity," Lauer said. "But we expect costs to decrease over time as customer demand grows, and more and more renewable energy facilities are brought on line."

A key element of the proposal is to encourage the operation and development of renewable energy generation projects in Michigan. To accomplish that, DTE Energy plans to issue a Request for Proposal (RFP) for new, Michigan-based renewable projects. The company then expects to enter into long-term agreements with developers who will provide the renewable energy supply for the GreenCurrents program.

DTE Energy hopes to begin offering GreenCurrents to customers early next year, pending approval by the Michigan Public Service Commission.

DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include Detroit Edison, MichCon, a natural gas utility serving 1.3 million customers in Michigan and other non-utility, energy businesses focused on power and industrial projects, fuel transportation and marketing, and unconventional gas production.