Federal $1.68B loan aims to lower Michigan energy costs, improve infrastructure

By Elyse Apel
The Center Square

The Trump administration has approved a $1.68 billion loan for DTE, saying the funding will help modernize the utility’s natural gas infrastructure and lower energy costs for Michiganders.

The U.S. Department of Energy’s Office of Energy Dominance Financing announced the loan agreement with DTE Gas on Monday.

Federal officials say it is expected to generate more than $700 million in savings for customers while strengthening energy reliability across the state.

“Thanks to President Trump and the Working Families Tax Cut, the Energy Department is lowering energy costs and ensuring the American people have access to affordable, reliable, and secure energy,” Energy Secretary Chris Wright said in a statement. “This loan to DTE Gas will lower energy costs, create jobs and increase grid reliability for the people of Michigan.”

According to the DOE, the funding will be used to modernize and reinforce about 800 miles of natural gas distribution mains and service lines. The project also plans to rebuild a compressor station, which allows DTE to store natural gas during periods of low demand for use in high-demand periods.

The announcement came the same day Wright joined U.S. Rep. Tom Barrett, R-Michigan, in Lansing for a roundtable discussion on Michigan energy policies. During the event, Barrett argued federal efforts to lower energy costs are being undermined at the state level.

“We’ve taken historic steps at the federal level to lower energy prices for families while rush-to-green mandates in Michigan continue causing those savings to disappear,” Barrett said. “Michigan families are working hard to pay the bills and keep the lights on, and they need more affordable, reliable energy to do that—not less.”

In 2023, Michigan Democrats passed clean-energy legislation requiring utilities to achieve 100% clean energy by 2040. Supporters say the law will reduce emissions, while critics argue it could increase costs.

The DOE said the DTE loan aligns with President Donald Trump’s executive order, “Unleashing American Energy,” which seeks to expand domestic energy production and infrastructure.

“DOE remains committed to setting a new standard for government energy financing, ensuring the responsible stewardship of taxpayer dollars and that loans deliver affordable, reliable, and secure energy for the American people,” it said in a statement.

The department added that the loan was made possible through the Working Families Tax Cut, legislation signed by President Donald Trump last July.

House Speaker Matt Hall, R-Richland Township, praised the investment.

“Thanks to President Trump, Congressman Barrett and Secretary Wright, we are seeing a strong investment in American energy and clean natural gas,” Hall said. “This is a great way to strengthen our grid and make monthly electric bills more affordable.”

DTE provides electricity to about 2.3 million customers in southeast Michigan and natural gas to another 1.3 million.