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DTE Electric boosts carbon emissions reduction target to net-zero

DTE Energy Co. announced a goal for its electric utility, DTE Electric Co., to achieve net-zero carbon emissions by midcentury.

"We are fully committed to doing our part to dramatically reduce carbon emissions from DTE Electric," DTE Energy CEO Jerry Norcia said in a Sept. 26 news release. "Setting the goal of net zero carbon emissions for our electric company by 2050 is an important next step that builds on our existing commitments."

The company's electric utility serves 2.2 million customers in Detroit and southeastern Michigan. In 2017, it set a goal of reducing its carbon emissions 80% below 2005 levels by 2050 and in March said it would achieve that target by 2040.

Like other utilities announcing goals to decarbonize power fleets, DTE acknowledged there will be challenges ahead.

"Achieving carbon neutrality will require further advancements in technology, such as carbon capture, large-scale storage, and modular nuclear facilities," the company said in its news release. To date, DTE Energy said it has invested $2.8 billion in Michigan-made renewables. It expects to double that amount in the next five years. In April, it outlined plans to shut down its coal-fired power plants by 2040.

Other utilities setting emissions reduction targets

DTE's announcement follows a cascade of similar commitments from major companies in the U.S. electric utility sector to reduce emissions. Such goals come as the prices of renewable-generated power fall, coal becomes less economic and a growing number of states enact tougher policies to reduce carbon emissions. Other utilities aiming to reduce or remove carbon emissions from resource portfolios include Xcel Energy Inc., which in December 2018 announced a 100% zero-carbon goal by 2050. IDACORP Inc. subsidiary Idaho Power Co. in March announced it wants to provide 100% clean power by 2045. PNM Resources Inc. subsidiary Public Service Co. of New Mexico in April announced its goal to provide 100% emissions-free power by 2040. Public Service Enterprise Group Inc. in July announced a net-zero emissions target by midcentury. And Berkshire Hathaway Energy subsidiary MidAmerican Energy Co. said it would supply its Iowa customers with 100% renewable energy by 2021.

DTE's resource portfolio as of the end of 2018 included 64% coal, 18.6% nuclear, 8.6% natural gas, 6% wind and less than 1% solar as well as small amounts of other fuels, it said. According to S&P Global Market Intelligence data, the company's owned operating nameplate capacity is nearly 13,000 MW. Notable assets include the 3,086-MW coal-fired Monroe plant and a 1,146-MW gas-fired plant, Blue Water Energy Center (Belle River Combined Cycle Plant), under construction and due in operation in 2022.

Earlier in September, DTE issued a request for proposals for solar projects ranging from 25 MW to 200 MW and wind projects ranging from 100 MW to 200 MW to help achieve compliance with Michigan's renewable portfolio standard, which requires utilities to provide 15% of their energy through renewables by 2021.