DTE Electric for Cannabis Facilities: D4 vs D11 Demand, Choice Cap, and Indoor Agriculture Rebates
DTE Electric serves Detroit and southeastern Michigan in MISO Zone 7 with the electric choice cap fully subscribed and a multi-thousand-customer queue. Rate D4 Large General Service bills 27.10 dollars per kW distribution demand on full service, while Primary Supply Rate D11 at primary voltage charges 7.15 dollars per kW. DTE's 2026 business rebate catalog is one of the few that names indoor cannabis grow rooms as eligible for HVAC, LED, and dehumidifier incentives.
Service area and choice cap status
DTE Electric is the largest Michigan electric utility, serving Detroit metro, southeastern Michigan, the Thumb, and parts of the northeast Lower Peninsula [dte-rate-book]. The territory sits in MISO Local Resource Zone 7 [mpsc-choice-2025-report].
DTE's electric choice cap is fully subscribed with a queue [mpsc-choice-2025-report]. New cannabis facilities enter the rank-ordered queue at service application and run on utility full service [dte-electric-choice]. Monitor the Cap Tracking System on DTE's electric choice page [dte-electric-choice].
Southeastern Michigan holds a dense cluster of Class C grows, processors, and retailers among Michigan's largest license counts [growgoyle-mi-q3-2026].
Delivery classes
| Rate | Description | Typical cannabis account |
|---|---|---|
| D3 | General Service, energy-only, up to 1,000 kW at company option [dte-rate-book] | Dispensaries |
| D4 | Large General Service, demand-metered secondary [dte-rate-book] | Class C grows, processors |
| D11 | Primary Supply, 50 kW minimum contract [dte-rate-book] | Large grows at primary voltage |
Rate D3 carries a 6.670 cents/kWh distribution energy charge with no demand charge [dte-rate-book]. Rate D4 bills distribution demand at 27.10 dollars/kW, capacity demand at 9.18 dollars/kW, and non-capacity demand at 7.48 dollars/kW on full service [dte-rate-book]. Rate D11 bills distribution at 7.15 dollars/kW at primary under 24 kV [dte-rate-book].
D4 vs D11 decision
For a grow with 400 kW billing demand on full service:
| Component | D4 (secondary) | D11 (primary under 24 kV) |
|---|---|---|
| Distribution demand | 400 x $27.10 = $10,840 [dte-rate-book] | 400 x $7.15 = $2,860 [dte-rate-book] |
| Capacity demand (D4 only) | 400 x $9.18 = $3,672 [dte-rate-book] | Arranged separately on choice; utility capacity available on full service |
The D11 path requires primary infrastructure and customer-owned transformer [dte-rate-book]. Plan during buildout. See demand charges explained.
D4 includes an on-peak billing-demand ratchet [dte-rate-book]. Interval data helps manage peaks.
Default full service vs choice
Most DTE cannabis accounts are on full service because the cap is full [mpsc-choice-2025-report]. Full service bundles generation and capacity into regulated charges plus the demand lines above.
When an allotment opens, choice customers must arrange MISO Zone 7 capacity or take DTE capacity service [mpsc-choice-2025-report]. D11 retail-access customers taking utility capacity face a 10.34 dollars/kW on-peak capacity demand charge [dte-rate-book].
Return-to-service rules are punitive: two-year initial choice term, December 1 notice for peak-season return, late-return penalties [dte-electric-choice].
Indoor agriculture efficiency programs
DTE's 2026 business rebate catalog includes prescriptive indoor-agriculture measures [dte-ee-catalog-2026]:
- AG-30/31: LED grow lights replacing HPS/MH at minimum 2.10 micromol/J PPE, tiered by operating hours
- AG-35: HVAC reduction per watt reduced, explicitly for year-round indoor cannabis grow rooms
- AG-39: Dehumidifiers 155 to 478 pints/day at 2.80 L/kWh or better
Custom rebates cap at 75 percent of implementation cost [dte-ee-catalog-2026]. Interior LED and custom projects require reservation [dte-ee-catalog-2026]. Reserve before purchasing equipment.
Interconnection and buildout
Coordinate service size, primary vs secondary voltage, and transformer ownership with DTE during design. Demand-metered service requires interval-capable metering. A commercial energy audit supports both rebate applications and rate class decisions.
Detroit metro cultivation geography
Wayne, Oakland, and Macomb counties concentrate Class C grows and processors in industrial corridors from Detroit to Warren [growgoyle-mi-q3-2026]. Warehouse districts with primary service infrastructure suit D11 conversion better than retail strip conversions at secondary voltage. Walk the service drop with DTE during due diligence on any purchased building.
Interval metering and demand ratchets
D4 applies an on-peak billing-demand ratchet on full service [dte-rate-book]. Request AMI interval data after energizing to see whether 3 p.m. dehumidification or 6 a.m. light startup sets the ratchet. Shifting dehumidifier staging by 30 minutes can hold ratchets below a prior summer peak.
Capacity charge on full service vs choice
On D4 full service, capacity demand bills at 9.18 dollars/kW and non-capacity at 7.48 dollars/kW in current rate book sheets [dte-rate-book]. If an allotment opens, compare utility capacity service against self-arranged MISO capacity with your AES [mpsc-choice-2025-report]. D11 retail-access customers taking utility capacity face 10.34 dollars/kW on-peak capacity demand [dte-rate-book].
AG rebate reservation workflow
DTE requires reservation for interior LED and custom projects [dte-ee-catalog-2026]. Upload one-line diagrams showing canopy square footage, fixture count, and operating hours. AG-35 HVAC reduction credits watts removed from grow rooms explicitly including cannabis [dte-ee-catalog-2026]. Missing pre-approval voids the rebate.
Thumb and northeast Lower Peninsula grows
DTE serves beyond Detroit into the Thumb and northeast LP [dte-rate-book]. Rural grows may face longer line extension timelines but encounter less substation congestion than Warren or Romulus industrial corridors. Primary service may require longer feeder builds; factor line extension amortization into D11 savings models.
Storm outage sensitivity
Lake-effect storms hit Thumb cultivation sites harder than inner-ring warehouses [noaa-cag-michigan]. Backup power planning is delivery-regulated through DTE regardless of AES supply status [dte-electric-choice].
Romulus and Detroit industrial corridors face competing load from logistics warehouses electrifying fleets [dte-rate-book]. Apply for service early when substation capacity letters show limited headroom at your preferred site. DTE engineering studies can take 60 to 90 days on congested feeders [dte-rate-book]. Parallel-track cannabis licensing deadlines with utility timelines so cultivation licenses are not active before power is available [growgoyle-mi-q3-2026]. Delayed energization idle carry costs often exceed one month of D4 demand charges [dte-rate-book].
Cap tracker and queue reality
DTE Electric's choice cap is fully subscribed with a multi-thousand-customer queue [dte-electric-choice]. New cannabis facilities in Wayne, Oakland, Macomb, and Washtenaw counties should enroll in the queue at service application and optimize full-service tariff placement in the meantime [mpsc-choice-2025-report]. Monitor DTE's Cap Tracking System on the business electric choice page [dte-electric-choice].
Rate D3 for small loads
Rate D3 General Service is energy-only secondary with 6.670 cents/kWh distribution charge and no demand charge, available at DTE's option up to 1,000 kW [dte-rate-book]. Small processors or dispensaries may land on D3 if peak stays low [dte-rate-book]. Most Class C grows exceed D3 once flower rooms energize and move to D4 [dte-rate-book].
On-peak billing demand ratchet on D4
D4 includes an on-peak billing-demand ratchet on full service [dte-rate-book]. Summer peak management matters even when total monthly kWh is flat [dte-rate-book]. See peak demand vs peak usage and the Michigan LED retrofit case study.
Retail Access Service Rider capacity
Choice customers on DTE may take utility capacity service under the Retail Access Service Rider with $10.34 per kW on-peak capacity demand charge for retail-access customers taking utility capacity [dte-rate-book]. Compare that path against self-arranged MISO capacity before accepting an allotment [dte-electric-choice]. Figures change with rate cases [dte-rate-book].
Thumb and northeast LP accounts
DTE serves Thumb and parts of northeast Lower Peninsula beyond Detroit metro [dte-rate-book]. Rural GSD grows face longer utility line extension timelines [dte-rate-book]. Cap queue enrollment still required at application [dte-electric-choice].
February 2026 rate book order
DTE rate book figures carry MPSC order references that change independently [dte-rate-book]. D4 and D11 sheets may reflect different case numbers; confirm both before quoting [dte-rate-book]. On-peak ratchet language lives on D4 sheets [dte-rate-book].
DTE account management priorities
Monitor cap tracker monthly [dte-electric-choice]. Model D4 distribution $27.10/kW vs D11 $7.15/kW at primary [dte-rate-book]. Ratchet on D4 on-peak billing demand affects summer strategy [dte-rate-book]. D3 energy-only option for small loads up to 1000 kW at utility discretion [dte-rate-book].
Choice return requires December 1 notice for peak season [dte-electric-choice]. Two-year initial choice term [dte-electric-choice]. Indoor agriculture rebates AG-30 through AG-39 [dte-ee-catalog-2026].
Download rate book after every MPSC order in Case U-21860 series [dte-rate-book].
Compliance and documentation practices
Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports, queue confirmation letters where applicable, CRES contracts, and witness test reports [dte-rate-book]. Update the folder after every rate case order and every June benchmark reset [dte-electric-choice]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies to the utility account manager before paying disputed invoices [dte-ee-catalog-2026]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites so board reporting reflects operational reality rather than blended averages [mpsc-choice-2025-report]. Legal should keep meter assignment language in leases aligned with the license holder entity on the utility account [growgoyle-mi-q3-2026].
Download rate book after every MPSC order in Case U-21860 series [dte-rate-book].
Compliance and documentation practices
Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports, queue confirmation letters where applicable, CRES contracts, and witness test reports [dte-rate-book]. Update the folder after every rate case order and every June benchmark reset [dte-electric-choice]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies to the utility account manager before paying disputed invoices [dte-ee-catalog-2026]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [mpsc-choice-2025-report]. Legal should keep meter assignment language in leases aligned with the license holder entity on the utility account [growgoyle-mi-q3-2026].
Quarterly review cadence
Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports, queue confirmation letters where applicable, CRES contracts, and witness test reports [dte-rate-book]. Update the folder after every rate case order and every June benchmark reset [dte-electric-choice]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies to the utility account manager before paying disputed invoices [dte-ee-catalog-2026]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [mpsc-choice-2025-report]. Legal should keep meter assignment language in leases aligned with the license holder entity on the utility account [growgoyle-mi-q3-2026].
Related reading
- Michigan hub: market overview
- Commercial electricity rates: cross-utility comparison
- Cultivation facility energy: load profile detail
Frequently asked questions
What territory does DTE Electric serve?
DTE serves Detroit metro and southeastern Michigan plus the Thumb and parts of the northeast Lower Peninsula. It is the largest Michigan electric utility in MISO Zone 7.
Can a new DTE customer switch to an alternative supplier?
Not immediately. DTE's choice cap is fully subscribed with a queue. Enter the queue at service application and plan on full service until an allotment opens.
What is the D4 distribution demand charge?
On full service, D4 bills 27.10 dollars per kW of monthly billing demand for distribution, plus 9.18 dollars/kW capacity demand and 7.48 dollars/kW non-capacity demand as of the current rate book sheets.
When should a grow take D11 primary service?
When billing demand exceeds roughly 50 kW and the facility can take primary voltage with customer-owned transformer. D11 distribution demand at primary under 24 kV is 7.15 dollars/kW, a fraction of D4's 27.10 dollars/kW.
What are DTE's return-to-service rules for choice customers?
Two-year initial term on choice. Written notice by December 1 to return to full service for June-September peak season. Late returns pay the higher of tariff rates plus 10 percent or market-priced power plus 10 percent.
Does DTE offer cannabis-specific rebates?
Yes. The 2026 business catalog includes indoor-agriculture measures: LED grow lights AG-30/31, HVAC reduction AG-35 explicitly for cannabis grow rooms, and dehumidifiers AG-39. Custom rebates cap at 75 percent of cost. Reserve before purchase.
Related reading
- Michigan Cannabis Energy: Electricity Choice, Rates, and Utilities for Licensed Operators
How Michigan cannabis cultivators, processors, and dispensaries buy electricity: 10% choice cap, DTE and Consumers territories, MISO Zone 7, rates vs. the U.S.
- Consumers Energy for Cannabis Facilities: GSD Demand, Choice Queue, and AG211 Grow Lighting Rebates
Consumers Energy cannabis guide: GS through GPTU rate classes, GSD demand billing, ROA choice cap tracker, and AG211 grow-light rebates.
- Michigan Commercial Electricity Rates for Cannabis Facilities: DTE and Consumers Demand Classes
Michigan commercial power prices vs. the U.S., DTE D4 and D11 and Consumers GSD demand charges, choice cap context, and MISO Zone 7 capacity.
- How to Switch Electricity Suppliers in Michigan: Cap, Queue, and Return-to-Service Rules
How a Michigan commercial account enters the electric choice queue, obtains an AES allotment, and switches supply under the 10 percent cap and MCL 460.10a.
- Michigan Cannabis Cultivation Facility Energy: DTE D4 vs D11, Consumers GSD, and Cold-Climate Loads
What a Michigan indoor grow pays for power: 6,745 HDD cold-climate HVAC, DTE and Consumers demand classes, primary voltage savings, and a worked example.
- Demand Charges Explained for Cannabis Cultivators
What a demand charge is, how utilities measure peak kW in 15- or 30-minute windows, why grow rooms get hit hard, how ratchets work, and a worked example.
- Commercial Energy Audits for Cannabis Facilities: What to Expect
ASHRAE Level 1, 2, and 3 audits explained, what an auditor measures in a grow, the findings that recur, who pays, and how to use the report to negotiate.
Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.
Sources
Inline citations in this article, such as [dte-rate-book], refer to the entries below. Links open the primary source in a new tab.
- [dte-rate-book]DTE Electric Company Rate Book for Electric Service, M.P.S.C. No. 1 - Electric (rate schedules D3, D4, D11) — DTE Electric. Accessed 2026-09-11.
- [dte-electric-choice]Electric Choice for Business (Cap Tracking System and Retail Access Service Rider terms) — DTE Energy. Accessed 2026-09-11.
- [dte-ee-catalog-2026]2026 Program Rebate Catalog, Energy Efficiency Program for Business (Indoor agricultural specifications) — DTE Energy. Accessed 2026-09-11.
- [mpsc-choice-2025-report]State's electric choice program remains fully subscribed in 2025 (annual Status of Electric Competition report), February 2, 2026 — Michigan Public Service Commission. Accessed 2026-09-11.
- [growgoyle-mi-q3-2026]Michigan Cannabis Market Q3 2026: Prices and Licenses (citing CRA active-license data, snapshots May 31 and July 23, 2026) — Grow Goyle. Accessed 2026-09-11.
- [noaa-cag-michigan]Climate at a Glance: Michigan statewide heating and cooling degree days, 1991-2020 base period averages — NOAA National Centers for Environmental Information. Accessed 2026-09-11.