3 Wind Farms to Open in State

The Detroit Free Press

 

John Deere Wind Energy said Friday that it plans to open three new wind farms, two of which will be the largest in the state. The announcement is a major boost for the future of wind energy in Michigan.
The new projects -- in Lenawee County and Michigan's Thumb -- are expected to increase the state's wind power capacity by 61% to 374 megawatts. That would generate electricity for more than 84,000 households.

Michigan has lagged other states in developing wind power even though it has several areas ideally suited for it.

The three wind farms are to provide power to Consumers Energy beginning in 2012. They are:

• Michigan Wind 2 in Sanilac County (90 megawatts);

• Blissfield Wind Energy in Lenawee County (81 megawatts);

• Harvest II in Huron County (59.4 megawatts).

John Deere Wind Energy, based in Johnston, Iowa, already also owns the state's two existing large wind farms.

"We intend to lead the nation in making our nation energy independent," said Gov. Jennifer Granholm, who lauded the projects in a speech at the Michigan Energy Fair, which began Friday at the Rock Financial Showplace in Novi.

The wind farms and a new landfill gas-electric generation facility in Lenox Township that is to be developed by Waste Management Renewable Energy will enable Consumers Energy to obtain 6.2% of its power from renewable-energy sources by 2012, up from the current 4%. Under Michigan law, it must reach 10% by 2015.

Granholm also announced that nine Michigan companies will get $20 million in clean-energy manufacturing grants -- money that comes from the federal stimulus program.

The companies are: Amptech in Manistee ($573,000), Great Lakes Industry in Jackson ($2.5 million), Grid Logic in Metamora ($5 million), Heat Transfer International in Kentwood ($2.8 million), Innotec in Zeeland ($1.2 million), KC Jones Plating in Warren ($300,000), Polar Seal Window in Grand Rapids ($200,000), URV USA in Rochester ($4 million) and Ventower Industries in Monroe ($3.5 million).

Granholm and U.S. Sen. Debbie Stabenow, D-Mich., who also attended the event, stressed the importance of making sure that new clean-energy products and technologies are made in the U.S., particularly in Michigan.

"We have to incentivize manufacturing it here," Stabenow said.

Of the 8,000 parts in a wind turbine, "we can make every one in Michigan," Stabenow said. "For me, the magic word is manufacturing."

Consumers Energy Suspends $2.3 Billion Coal-Fired Power Plant near Bay City

Bay City News

 

HAMPTON TWP. — Consumers Energy is halting a project to build a $2.3 billion coal-fired power plant on the shores of Saginaw Bay in Hampton Township.

Officials from the company announced today that Consumers is deferring - not canceling - plans for the 830-megawatt plant that was expected to create 1,800 construction jobs and more than 100 permanent jobs when the facility went online in 2017.

Officials said the decision to put off the project was made because of reduced customer demand for electricity and forecasted lower natural gas prices, among other factors.

"It's a combination of customer demand just being lower and significantly lower natural gas and electricity prices," said David G. Mengebier, senior vice president of governmental and public affairs for Jackson-based Consumers Energy.

Mengebier said the company, in 2009, generated 900 megawatts of energy less than it projected. He also said original projections for the amount of energy the company will generate in 2017 - when the new plant was to become operational - were 700 megawatts above what the company now believes it will generate, based on customer demand.

"We continue to believe that new clean coal generating capacity will be in the long-term best interests of our 1.8 million electric customers as part of a balanced energy portfolio," John Russell, president and CEO of Consumers Energy and its parent company, CMS Energy, said in a statement.

"But, the current timetable for the new unit isn't consistent with today's market conditions. Based on the latest market dynamics, we have determined that it is in the best interest of our customers to defer development of the new plant at this time."

Mengebier said the deferment has nothing to do with opposition from the Natural Resources Defense Council or other environmental groups that oppose construction of a new coal-fired plant.

"They'll claim victory, but the fact is ... it had nothing to do with whether to build this plant or not," Mengebier said."It had everything to do with what are the market conditions and how do they affect the economics of this project and the timing of it?"

Consumers Energy announced plans to build the new plant at its Karn-Weadock Generating Complex in 2007 and received its air permit for the project from the Michigan Department of Environmental Quality in December.

The NRDC filed a lawsuit in Ingham County Circuit Court in March challenging the air permit.

As part of the permit process, Consumers agreed to shutter up to seven of its oldest, less efficient coal-fired power plants in Michigan when the new plant in Hampton Township came online.

Mengebier said the company will now take another look at those plants to determine their future and whether to retire, mothball or upgrade those facilities.

Meanwhile, Mengebier said Consumers Energy plans to invest $730 million from 2011 to 2015 to make environmental upgrades to the Karn-Weadock plant based on future clean air and clean water legislation.

He said that work, and other future projects at the plant, is expected to create and retain more than 4,300 jobs through 2018.

Mengebier said coal still will be a part of Consumers Energy's future.

"I think that there is a consensus in this state for building new clean coal plants," he said. "I think it will be part of Michigan's future."

Local politicians want to believe it will still be a part of Bay County's future, too.

"We obviously want to see this move forward," said State Rep. Jeff Mayes, D-Bay City, who has been an avid supporter of the project.

"We also know there's a significant investment in Michigan regarding energy today, not only in terms of green energy in the region and around the state, but also anticipated in transmission."

Mayes said when it comes to the construction of the plant, under the energy laws we are under, it puts any investment under greater scrutiny.

"The demand for power has dropped off more between 2000 and 2008 than anticipated," said State Sen. Jim Barcia, D-Bay City, who also supports the project. "It doesn't mean it's a death sentence for the plant but it certainly extends the time frame in which Consumers Energy will pursue this."

Barcia said he believes the company is doing what it believes to be the best thing for its customers and the future of energy in Michigan.

Michael Seward, president of the Bay Area Chamber of Commerce, reiterated that there will still be investment in Bay County from Consumers Energy and today's announcement is not a death knell for the proposed plant.

"We have to remember this is a deferment and they aren't canceling the program," Seward said. "There's still going to be a very large investment in the area in Karn-Weadock."

Russell said Consumers Energy will continue monitor customer demand, fuel and power prices and other market conditions, but has set no timetable for a future decision about the project.

Consumers Energy Opens $7 Million Service Center

The Detroit Free Press

Consumers Energy has opened a new $7 million service center in Livingston County.

The Livingston County Daily Press & Argus in Howell reports employees moved in last month and a grand opening was scheduled for today. Crews completed the 21,000-square-foot Genoa Township facility three months ahead of schedule.

The CMS Energy Corp. subsidiary said it outgrew its former area location, which was built in 1966.

The center has about 60 employees and takes care of 66,000 customers in Livingston County and western Oakland County.

Consumers Energy, Environmental Groups React To Bay City Coal Plant News

mLive

Consumers Energy is applauding approval of an air permit for a new coal plant in Bay County, while environmental groups are criticizing the decision by the "Granholm-Cherry administration."

“The issuance of the air permit for our new clean coal plant is good news for Michigan," John Russell, Consumers Energy’s president and chief operating officer, said in a statement.

"This permit moves our project a step closer to creating badly needed jobs and boosting the state’s economy. It also provides best-in-class protection for the environment with an offset for carbon dioxide emissions from the new plant and a substantial net reduction in overall emissions from our coal-fired generating fleet."

The air permit includes a commitment from Consumers Energy to retire up to seven of its older, less efficient coal units after the new unit begins operating at the company’s Karn-Weadock complex in Bay County's Hampton Township

The $2 billion-plus, 830-megawatt plant is expected to create 1,800 construction jobs, about 2,500 indirect jobs and more than 100 permanent jobs after it begins operating in 2017, Russell said. Overall, the plant is projected to provide a $1.2 billion economic boost to Michigan, he said.

But environmental groups say the DEQ's decision "strikes a blow to clean energy investments and jobs in Michigan."

“We are disappointed by the failure of Governor Granholm to keep her promise to move Michigan toward a clean energy economy," said Sierra Club Michigan Chapter Director Anne Woiwode.

"Thousands committed to Michigan’s future are rallying to fight this badly flawed decision at every step to get Michigan back on track toward a clean energy economy."

Russell said the company plans to file a certificate of necessity application with the Michigan Public Service Commission in 2010.

The air permit includes a commitment from Consumers Energy to retire up to seven of its older, less efficient coal units after the new unit begins operating at the company’s Karn-Weadock complex in Bay County's Hampton Township.

Five of the older units will be retired following operation of the new unit, with retirement of the additional two older units depending on customer need, he said.

The Sierra Club and other groups counter that the shut-down requirement does nothing to push Consumers Energy toward clean energy alternatives.

“Michigan is heading in the wrong direction with this unfortunate decision,” Clean Water Action Michigan Director Cyndi Roper said.

“The federal government has declared coal pollutants a threat to human health. Every other state is investing in clean energy, creating jobs and turning away from coal. Michigan, on the other hand, is looking to the past and this decision threatens to keep us in the energy Dark Ages."