The facility is currently owned by The LS Power Group, will allow DTE to meet the peak demand of approximately 260,000 households on a hot summer day. The purchase will allow DTE to address its current and future resource adequacy requirements.
DTE Energy will pay about US$240 million to LS Power Group for the simple-cycle natural gas facility.
The firm expects to complete the transaction during the first quarter of 2015.
Jerry Norcia, DTE Electric's President and Chief Operating Officer stated:
"The purchase of Renaissance Power provides DTE customers with a safe, affordable, reliable and clean generation resource at a cost that is significantly below new build. Tightening supply markets for electricity in the region are expected to cause prices in the state and region to rise and become more volatile. This acquisition helps protect our customers from these dynamics."
DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include:
The DTE Energy portfolio also includes non-utility energy businesses focused on power and industrial projects, midstream services and energy trading.