Economic and Fiscal Impact of Power Plant Closures in Michigan

The Challenge

DTE Energy (DTE) is in the midst of retiring its existing coal-fired power plants in Michigan as one of the major pathways to achieving its ambitious emissions and climate-related goals.

As part of that process, DTE Energy is proactively working to first understand the existing economic climate in its two host communities and within the regions that will be considered as a part of this initiative. They also want to better understand the economic impacts their current plant operations are having within these communities.

DTE sought support in developing a strategic framework grounded in data to inform key decision-makers within DTE of existing best practices related to similar transitions and mapping out an implementable strategy with action items that cover everything from regulatory policy considerations to stakeholder engagement, communications, and potential funding strategies.

The Solution

DTE retained Camoin Associates to conduct an economic baseline analysis of the communities where the power plants are located, an economic and fiscal impact analysis of the current contributions of the power plants to their host communities, and to offer strategies for moving forward with transition plans.

The Impact

Camoin Associates worked with DTE to communicate the findings from the analyses to internal stakeholders. Following the completion of the original project, Camoin Associates was retained by DTE to continue to assist in their efforts, including participating in community engagement and conducting economic and fiscal impact analyses of potential future scenarios for the plants.