Suspension of Bay City-area Coal Plant Good News for Michigan Consumers

Consumers Energy finally said today what environmental and citizen groups have been saying for years: There's not a need for new, dirty power generation in Michigan. 

Officials with the Jackson-based company left out the dirty part, but said today that construction of a new $2.3 billion, 830-megawatt plant has been "deferred." It was to go online in 2017, saddling customers with higher rates, still polluting the environment with mercury and other toxic substances and committing Michigan to an investment in coal rather than cleaner energy alternatives for decades to come.

"The Michigan utility is deferring -- not cancelling -- development of the new unit because of reduced customer demand for electricity due to the recession, forecasted lower natural gas prices due to recent developments in shale gas recovery technology, and projected surplus generating capacity in the Midwest market," Consumers said in a news release. 

Lisa Wozniak, executive director of the Michigan League of Conservation Voters, said the Consumers' decision is "a welcome reflection of the energy realities in Michigan.

"It illustrates a recognition of declining demand, a need to expand energy efficiency programs to help customers save money, and the responsible protection of ratepayers from having to pay for a multi-billion dollar expenditure."

The decision comes just days after a permit for another coal plant near Rogers City was denied. 

"We are extremely pleased that Consumers has finally made a decision that reflects an understanding of the facts that we have been highlighting for years," Wozniak said of the Bay City plant decision.

"The environmental community has been the primary voice in demanding the protection of ratepayers and an honest assessment of demand for an additional multi-billion dollar coal plant project.

"This is simply proof that this issue is not about creating or killing jobs, which has been the false argument for quite some time. Rather, it's about making a decision that will create huge costs for the community based on facts like actual demand and consumer protection."

According to The Bay City Times, Consumers Energy will continue to monitor customer demand, fuel and power prices and other market conditions, but has set no timetable for a future decision about the project.

Let's hope this signals a move toward seeking better ways to meet our power needs, with energy efficiency and renewable sources like wind and solar energy.