DTE Energy Company
) has received approval from The Michigan Public Service
Commission to purchase 20 megawatt (MW) of wind power from a
subsidiary of Heritage Sustainable Energy, a Michigan wind energy
The 20-year contract between DTE Energy and Heritage Sustainable
Energy calls for the purchase of all the power produced from Big
Turtle Wind Farm LLC. Located in Rubicon Township in Huron County
in Michigan's Thumb area, this wind farm is spread over an area
of 2,800 acres and is expected to come online in late 2014. The
20 MW of electricity will be enough to power 9,000 homes.
The Big Turtle Wind Farm will have 10 2-MW turbines. This wind
farm is unique in the sense that instead of using turbines of
established manufacturers such as
General Electric Company
), it will employ turbines of a local company, Ventower
Industries. In fact, the farm intends to promote new technology
advanced by Ventower Industries and other local Michigan
suppliers, which would comprise at least 50% of the total
By 2015, the company expects to add more than 900 MW, or 10% of
its power. This wind power contract comes on the heels of the
company's efforts to meet the state's renewable energy goals.
This contract would bring the company's renewable energy
portfolio to 9.8%, thereby implying that the company is just 0.2
percentage points away from its goal of reaching 10.0% by 2015.
In the current climate of promoting green energy, power purchase
agreements (PPAs) are an easy way for renewable-energy producers
and regulated utilities to fulfill their renewable energy goals.
In April this year, San Diego Gas & Electric, a subsidiary of
), had entered into a PPA to buy 62 MW of capacity from five
renewable energy projects in California. These projects comprise
three solar and two wind operations.
Duke Energy Corp.
) took over the largest solar generation facility in San
Francisco - the Sunset Reservoir Solar Power Project - from
Recurrent Energy. With a capacity of 4.5 megawatt alternating
current (MWAC) this solar power system consists of almost 24,000
solar panels mounted on top of the Sunset Reservoir.
DTE ENERGY CO (DTE): Free Stock Analysis
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DTE Energy is focused on improving its cost structure and
directing capital investments toward renewable generation,
utility infrastructure and environmental compliance assets. Going
forward, the growth momentum will be maintained by beneficial
regulatory policies in Michigan, higher authorized rates for its
regulated business, the strong balance sheet, growth
opportunities in its un-regulated businesses and an industry-high
However, we are concerned about the present unfavorable macro
backdrop, lower demand for electricity, the dismal economy in
Michigan and pending regulatory cases. The company presently
retains a short-term Zacks Rank #3 (Hold).