The plant began commercial operations on February 24.
The plant will use 320,000 tons of biomass fuel each yeah to generate 45 megawatts of power. DTE predicts the plant will produce enough power for 45,000 homes.
The fuel is derived from urban wood waste, tree trimmings and agricultural processes.
The site was one of the most polluted in San Joaquin Valley but is now home to one of the cleanest solid-fuel power plants in the country, said DTE.
It is providing 35 high-quality jobs and another 100 indirectly involved with DTE Stockton's fuel supply infrastructure.
The plant began operation in 1989 as a coal-fired power plant and ceased operation in 2009.
DTE purchased it in June 2010 with plans to convert the plant to biomass.
At its peak, the construction project employed more than 100 workers.