DTE Energy Prepares Green Patch

Yesterday, DTE Energy Co.'s (DTE - Analyst Report) utility subsidiary Detroit Edison made two Requests for Proposal (RFPs) to add 180MW of renewable energy to its kitty. The proposals are inline with the statutory requirement for Michigan electric utilities to generate 10% of their retail sales from renewable energy sources by fiscal 2015.

The first RFP calls for partners in developing wind-energy farms with annual capacity of 75MW in Michigan that would be made operational by Dec. 31, 2011. Detroit Edison will take over the wind farm upon completion. The RFP is open till Nov. 2, 2009. By adding captive wind farms to its portfolio, the company will automatically receive 100% of the wind energy and renewable energy credits.

Through the second RFP, Detroit Edison is looking for resources that can generate nearly 106MW of renewable energy and related credits in a long term. The company expects to sign 20-year horizon power purchase agreements to fulfill renewable-energy mandates. This RFP is open till Oct. 23, 2009.

Detroit Edison expects to add more than 1,200MW of renewable energy to its portfolio by 2015. The expansion will be both through addition of captive sources and contract with third-party producers. For this purpose, Detroit Edison has acquired more than 70,000 acres of land for developing its wind farms and other related infrastructure.

DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Detroit Edison is its principal operating subsidiary, providing electricity to 2.2 million customers in Southeastern Michigan. We maintain our market Neutral recommendation on the stock.

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