MID-MICHIGAN (WJRT) – The U.S. Department of Energy has finalized a $1.6 billion loan to help modernize DTE’s natural gas infrastructure.
ABC12 talked to the Department of Energy about how these funds could impact monthly bills. Director of the U.S. Department of Energy Office of Energy Dominance Financing Greg Beard said the loan will help address aging pipelines and rising utility bills.
“It’s a lot of capital with a lot of savings for those ratepayers,” Beard said.
According to Beard, the funds will be used to replace about 800 miles of outdated gas pipelines, improve system reliability and enhance safety across the state’s natural gas network.
“Natural gas is a great cheap source of fuel,” Beard said.
ABC12 reached out to Consumers Energy, asking if it will request similar loan assistance to ultimately provide cost savings to customers. A spokesperson said:
“Consumers Energy appreciates being selected for potential Department of Energy loans. That loan commitment has expired, and we are no longer pursuing it.
Consumers Energy remains committed to securing our grid and serving our customers, and that work continues every day.”
Beard said the loan is expected to save more than $700 million for Michigan customers. However, the savings will take time to materialize.
“This capital is going to go in over the next few years and so, it takes a long time to replace 800 miles of pipeline and those service lines,” Beard said. “So, the savings will be felt over the life of the loan and it’s a 30 year loan.”
The project is expected to support thousands of jobs during construction and help meet the state’s long-term energy needs.
“We want to put and keep as much cash in people’s pockets as possible,” Beard said. “So, we’re focused on projects that get that done.”
While supporters say the investment is a step toward a more efficient energy system, others say they will be watching closely to see how and when the improvements start lowering their monthly bill.