If approved as filed, this would be a bigger increase than the 4.1 percent DTE got approved in its last case; MPSC Staff and the state Attorney General both want the increase cut well below what DTE asked for.
Enterprise data center sales and use tax exemption
On bills now Rate matter, docket SB 237 (PA 181 of 2024) and HB 4906 (PA 207 of 2024) before the Michigan Public Service Commission.
No residential dollar figure published yet
The filing does not state a typical-bill impact we can verify. We will add one when the commission staff or the consumer advocate publishes it.
What happens next
The new rate took effect January 17, 2025 and is already on your bill. How rate cases work.
Michigan exempts qualifying data center equipment from the state's 6 percent sales and use tax under two 2024 laws, Senate Bill 237 and House Bill 4906, which Governor Whitmer signed between December 30, 2024 and January 17, 2025. To qualify as an enterprise data center, a company must invest at least 250 million dollars and create at least 30 jobs paying 150 percent or more of the local median wage, and the exemption now runs through 2050, or 2065 for projects on brownfield or former power plant sites. This is a break on equipment sales tax, not an electric rate, but it is the main financial incentive drawing large data centers like the Stargate campus to Michigan.
What it means for your bill: This does not change anyone's electric bill by itself; it is a state sales tax break for data center owners, separate from the MPSC cases that set how those same data centers pay for electricity. It applies statewide, regardless of which utility serves the site.
- Status
- On bills now
- Utility
- DTE Electric
- Commission
- Michigan Public Service Commission
- Docket
- SB 237 (PA 181 of 2024) and HB 4906 (PA 207 of 2024)
- Decided
- January 17, 2025
- On bills from
- January 17, 2025
- Data center linked
- Yes. The filing ties part of the cost or the tariff design to data center load. The projects themselves: isadatacentercoming.com.
- Last checked
- August 29, 2026
Common questions
How much will my DTE Electric bill go up?
That has not been published yet; we will add it once the commission staff or the consumer advocate release a figure.
When would the new rates start?
They already did, on January 17, 2025.
When is the hearing?
No hearing date is on record for this case.
How do I comment?
The comment period closed once this case was decided; its result is above.
Sources
- Michigan Approves Tax Breaks for Hyperscale Data Centers, Government Technology
- Data centers create few jobs. Michigan wants to give them big tax breaks, Bridge Michigan
- House Bill 4906 (2023-2024), Michigan Legislature
- Senate Bill 237 (2023-2024), Michigan Legislature
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Other DTE Electric matters
This is one of the two annual cases that set what a typical DTE household bill looks like; the approved increase was about 58 percent smaller than DTE requested.
The order is meant to keep this one data center's power costs off the bills of regular DTE residential customers, but critics argue the fast, largely ex parte approval process did not fully test that promise.
Other pending cases in Michigan
This is a new, separate request on top of the rate increase that already took effect in May 2026. Michigan's Attorney General is now pushing to cut it by more than half; nothing has been decided yet.
If approved as filed, this would be a bigger increase than the 4.1 percent DTE got approved in its last case; MPSC Staff and the state Attorney General both want the increase cut well below what DTE asked for.