DTE Energy has announced its plan to purchase the Renaissance Power Plant, a 732 megawatt simple-cycle natural gas facility, for $240 million. DTE expects to complete the transaction during the first quarter of 2015.
The facility, located in Carson City, Michigan, and currently owned by The LS Power Group, will allow DTE to meet the peak demand of approximately 260,000 households on a hot summer day. The purchase will allow DTE to address its current and future resource adequacy requirements.
"The purchase of Renaissance Power provides DTE customers with a safe, affordable, reliable and clean generation resource at a cost that is significantly below new build," said Jerry Norcia, DTE Electric's President and Chief Operating Officer. "Tightening supply markets for electricity in the region are expected to cause prices in the state and region to rise and become more volatile. This acquisition helps protect our customers from these dynamics."