The federal government is issuing a $1.6 billion loan to Detroit-based DTE Energy aimed at modernizing the utility's natural gas infrastructure in Michigan.
DTE, according to a news release, will use the loan to service around 800 miles of natural gas pipeline and rebuild a compressor station where natural gas is stored. Dan Miner, DTE communications director, said in an email the loan will allow DTE to store more natural gas during low demand periods, allowing the company to better respond to high demand.
The loan is made available through the U.S. Department of Energy's Office of Energy Dominance Financing's Title 17 loan program. Last year, President Donald Trump issued an executive order directing federal agencies to support growing the domestic energy supply, and the DOE has been aggressively issuing loans aimed at gas generation since.
The DOE said the loan will result in more than $700 million in savings to DTE's natural gas customers.
Miner didn't immediately return an inquiry on where the pipeline servicing will take place, or which compressor station will be rebuilt.
What is the Title 17 loan program?
The federal Title 17 loan program allows the DOE to finance projects aimed at rebuilding existing energy infrastructure. The loans are low-interest and allow companies to repay them over a course of decades.
DTE serves about 1.3 million Michiganders with natural gas service. The company is currently seeking to increase its natural gas rates by $236.5 million and has a case in front of the Michigan Public Service Commission. The commission is expected to rule on the case sometime before October.
