Two DTE Electric engineering, procurement, and construction (EPC) agreements with Rudolph Libbe Inc. and Inovateus Solar LLC for small solar projects were both approved July 8 by the Michigan Public Service Commission.
On June 6, the DTE Electric unit of DTE Energy (NYSE: DTE) filed an application requesting commission approval of the two EPC contracts. The EPC contracts are for 750 kW (Rudolph Libbe) and 504 kW (Inovateus) of energy, capacity, and renewable energy credits from two solar developments. Both projects will be constructed in Wayne County, adjacent to major freeways. Delivery under these contracts is expected to begin in 2015.
Under these deals, DTE Electric-owned solar energy generating facilities will be engineered, procured and constructed. The EPC contracts resulted from a request for proposal process. The commission staff reviewed the response documents and related scorecards and no issues were found.
In its application, DTE Electric stated that the average capital cost of the projects is $3,741 per kW. This price is lower than the projected 2014 solar generating facility capital cost per kW of $6,000 as set forth in DTE Electric’s most recent renewable energy plan case, which was approved by the commission in December 2013.
Raymond Zoia, the Marketing Program Manager for Renewable Energy at DTE Electric, said in June 6 testimony: “With this filing, DTE Electric is seeking the Commission’s ex parte approval of two Solar Engineering, Procurement, and Construction Contracts for delivery of a total of approximately 1.25 MW of nameplate solar-powered electric capacity towards the 15 MW Company-owned component of the Solar Currents program, along with related relief.”