DTE, Consumers Energy commit to spend $15 billion on Michigan suppliers over 5 years
Extension comes after billions in previous commitments to local suppliers through Pure Michigan Business Connect
Utilities among founding participants in the public-private initiative launched in 2011
New this time, a designated portion will go to minority-owned companies
Chad Livengood/Crain's Detroit Business
Lt. Gov. Garlin Gilchrist (at podium) joins Detroit Energy CEO Gerry Anderson (to left) and Consumers Energy CEO Patti Poppe (right) to announce that the companies plan to spend $15 billion over the next five years on Michigan-based suppliers. They made the announcement Thursday at the Mackinac Policy Conference.
DTE Energy Co. and Consumers Energy Co. plan to spend $15 billion over the next five years on Michigan-based suppliers, extending previous commitments through a public-private state initiative and expanding them to add a diversity element.
The Detroit- and Jackson-based companies made the announcement Thursday with Lt. Gov. Garlin Gilchrist at the Mackinac Policy Conference, according to a news release from the state.
They will spend $1.5 billion each with Michigan companies yearly through 2024, building on previous spending over the past eight years.
New this time, though, they'll dedicate a portion to minority-, veteran- and women-owned suppliers. DTE pledged to spend $2.5 billion of its five-year total on diverse suppliers, while Consumers pledged $300 million a year or $1.5 billion total.
The commitments come about through Pure Michigan Business Connect, a service under the Michigan Economic Development Corp. that aims to pair small and medium-size businesses with larger national or global partners to help them grow. DTE and Consumers were among founding participants in the public-private Pure Michigan Business Connect initiative launched under former Gov. Rick Snyder in 2011.
Originally, in 2011, they said they would boost spending on Michigan suppliers by $250 million each over five years, Crain's reported at the time of the launch. They re-upped those commitments in 2015, with DTE pledging to spend $5.5 billion by 2020 and meeting that goal early; Consumers committed $5 billion over five years and also hit its mark early.
"Whether we are talking about small businesses or skilled trades and training, it is critical that we create equitable opportunities to succeed here in Michigan," Gilchrist said in the release. "Pure Michigan Business Connect offers exactly the kind of support needed to make that happen, working with key partners like Consumers Energy and DTE."
On average, 20 percent of DTE's annual external spending goes to minority- or women-owned businesses, spokeswoman Lisa Bolla said. It aims to increase that percentage with its commitment through Pure Michigan Business Connect. Hitting the $2.5 billion, five-year goal would up that to 33 percent.
Consumers' target of spending $300 million a year over the next five years on suppliers with diverse ownership would double its current $150 million, spokesman Brian Wheeler said.
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