Coal Put On Hold in Michigan
by Bruce Goodman
The MDNRE has denied Wolverine Power Supply Cooperative’s air permit application for a new 600-megawatt power plant in Rogers City to be fueled by petroleum coke and coal. The decision was based on MPSC findings that the plant was not needed to meet future supply needs and would increase electricity rates by more than 59% to over 20 cents per kwh. The MPSC analysis suggested that Wolverine had alternatives to supply electricity to its customers at a fraction of the cost of a new power plant. Separately, Consumers Energy announced deferral of its development of a 830-megawatt coal-fired power plant near Bay City that it planned to have in operation in 2017. The reasons given included 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.
