If approved as filed, this would be a bigger increase than the 4.1 percent DTE got approved just months earlier in its last case.
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.
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.
- Last checked
- August 29, 2026
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.