Setback in Holland Coal Plant Expansion Plans

This week, the Michigan Public Service Commission issued a report that the Holland Board of Public Works failed to “adequately demonstrate the need for the proposed facility,” in reference to a 78-megawatt plant to replace a current 10-megawatt unit.

The report states that alternative ways of meeting power needs exist and that “other less costly alternatives were noted in the Electric Generation Alternatives Analysis (EGAA) and could be selected to meet Holland's expected capacity shortfall, if so desired.” Other such options include purchased power, combined cycle natural gas, energy efficiency, and renewables.

It also states that the Holland Board of Water and Light “underestimated the potential impact of energy efficiency in future years, coupled with an overly optimistic load forecast results in a projected capacity need which may not fully materialize.”

It's a good thing that Gov. Granholm's 2009-2 Executive Directive requires applicants to submit an Electric Generation Alternatives Analysis. This forces applicants to seek alternative, more efficient methods of energy before expanding or creating a new coal plant. Granholm’s leadership on this issue will help keep Michigan on track to a cleaner energy future.

Although this is not the final step in the process for the utility, it does leave us hopeful that the trend of limiting new coal plants will continue. A 600-megawatt coal plant near Rogers City proposed by the Wolverine Power Supply Cooperative was denied in May for similar reasons.

The MDNRE will make the final decision after reviewing the report produced by the MPSC. A denied report would force Holland to seek alternatives to meet its energy needs. As long as we are able to meet new energy needs with renewable means --- rather than backtracking with coal --- we will continue to ensure the creation of green jobs and greener energy throughout Michigan.