Consumers Energy Closes Seven Michigan Coal Plants, Electric Rates to Drop by $38 Million

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Researched by Industrial Info Resources (Sugar Land, Texas)--Michigan public utility Consumers Energy, (Jackson), a subsidiary of CMS Energy (NYSE:CMS) (Jackson), announced it is closing its seven oldest coal-fired power plants.

David Mengebier, the company's senior vice president of governmental and regulatory affairs explained how shutting the "Classic Seven" plants will move the state forward with switching over to more environmentally friendly sources of energy. "Michigan will now become a little greener with improvements in air quality and reduced water usage," he said.

The retirement of the 60-year-old facilities will cause electric rates to fall by $38 million for the company's 1.8 million customers, reducing an average bill by almost $8 a year. "In addition, Consumers Energy residential and business customers can expect more green in their wallets," Mengebier continued.

Industrial Info is tracking is the $14.5 million dismantlement of Consumer Energy's 510.6-megawatt (MW) B C Cobb Electric Generating Station in Muskegon. This project is scheduled to kick off in March of next year and has a completion date of September 2018.

The demolition of the 720-MW John C Weadock Power Station in Essexville is slated for kickoff in October 2017. With a completion date set for November 2018, the project will cost $33.8 million.

Another related project is the $21.4 million demolition of the 346-MW Whiting Power Plant in Erie. The project has a kickoff date October 2017 and will be completed by November 2019.

The closing of the coal-fired facilities comes at a poignant time for the coal industry, as the largest private-sector coal company in the world, Peabody Energy Corporation (NYSE:BTU) (St. Louis, Missouri), filed for Chapter 11 bankruptcy protection last week. For more information, see April 14, 2016, article Peabody Energy Bankruptcy Filing a Sign of the Times for Coal Industry.

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