Michigan approves DTE plan to build $1 bln natgas power plant

(Reuters) - Michigan utility regulators approved DTE Energy Co's plan to build a 1,100-megawatt natural gas fired power plant at its Belle River site in St. Clair County to replace aging coal plants.

The Michigan Public Service Commission (MPSC) said in a statement it authorized DTE to recoup up to $951.8 million for the construction of the plant through future rates charged to customers.

DTE had sought approval for $989 million in cost recovery. DTE thanked the MPSC for its decision and said it will continue to reduce carbon emissions by retiring aging coal plants and investing in renewable energy and natural gas. One megawatt can power about 1,000 U.S. homes.

The company said it expects to begin construction on the new gas plant in the spring of 2019 and have the facility operational in the spring of 2022. It will be DTE's first major power plant to be built since the Fermi nuclear plant went into service in 1988.

(Reporting by Scott DiSavino Editing by Tom Brown)

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