Released April 16, 2019 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Michigan's two largest electric utilities want to sharply curtail their use of coal and close several plants earlier than planned. Both utilities - Consumers Energy (Jackson, Michigan), a subsidiary of CMS Energy Corporation (NYSE:CMS) (Jackson, Michigan), and DTE Energy Company (NYSE:DTE) (Detroit, Michigan) - need to have their plans approved by the Michigan Public Service Commission (MPSC) (Lansing, Michigan).
Industrial Info is tracking more than $2.5 billion in electric power-related project activity by the two utilities.
In a settlement with a broad range of stakeholders, filed on March 23 with the MPSC, Consumers Energy said it wants to end its use of coal by 2040. The utility's clean energy plan envisions closing units 1 and 2 at the Daniel E. Karn Power Station by 2023, eight years ahead of schedule. Those units began operating in 1959. They have a combined generating capacity of 530 megawatts (MW) The plan also calls for closing units 1 and 2 of the J.H. Campbell Power Station Units by 2031. Those units began generating electricity in 1962. The two units have a combined generating capacity of 646 MW. Consumers owns 100% of those four units.
If approved by the regulators, Consumers' only remaining coal-fired generator, J.H. Campbell Unit 3, would close by 2040. That unit came online in 1980 and has a generating capacity of 820 MW. Consumers owns 93% of Campbell Unit 3. Once Campbell Unit 3 closes, the utility will cease burning coal.
In a statement on March 25, Consumers said it plans to meet its customers' electric needs through a combination of adding about 5,000 MW of new solar generation by 2030, as well as expansion of energy-efficiency programs that have saved customers about $2 billion since 2009. The clean energy plan would reduce carbon dioxide (CO2) emissions by 90% by 2040.
"This breakthrough plan positions Consumers Energy and Michigan as a national clean energy leader," Patti Poppe, president and chief executive of Consumers Energy, said in a statement on March 25. "The settlement enables our Clean Energy Plan and puts us on the path to zero coal substituted by increased renewable energy - most notably solar - all done in an affordable way through a competitive marketplace. Michigan will have one of the cleanest and most affordable energy systems in the country through this standard-setting plan."
Two weeks before Consumers reached a settlement with stakeholders, a judge with the MPSC recommended commissioners veto Consumers Energy's energy plan. The judge objected to the way Consumers would be compensated for contracting for new generation, the competitive bidding process Consumers plans to use to obtain that new generation and what independent generators would be paid for the power they supply to the utility. The commission will make its decision on June 10.
Michigan's other large electric utility, DTE Energy, filed its long-term energy plan with the MPSC on March 29. That plan, if approved by regulators, would result in closing the St. Clair Power Station and the Trenton Channel Power Station in 2022, one year ahead of schedule. The River Rouge Power Station also would be retired in 2022 under the plan.
Click on the image at right to see how DTE Energy's fuel mix will be shifting away from coal in the coming decades.
The St. Clair station began operating in 1953. It can generate up to 1,571 MW. The Trenton plant began generating electricity in 1924. It has a generating capacity of 520 MW. The River Rouge facility can generate up to 516 MW. It went online in 1956.
Earlier, DTE had committed to closing one of its other major coal plants, Belle River, by 2030. The plan would leave DTE's other coal plant in Michigan, the Monroe Power Station, operating. That plant, with 3,296 MW in generating capacity, began operating in 1969. DTE Energy plans to eliminate coal in its generation by 2040.
The DTE integrated resource plan (IRP) did not address the future of Monroe because it is more focused on the next five years, but in an interview, DTE Energy spokesperson Randi Berris confirmed Monroe will be closed by 2040 and the utility will be 100% coal-free by that year.
With the retirement of the St. Clair, Trenton, River Rouge and Belle River plants, DTE Energy would cut its CO2 emissions by 50% by 2030, and 80% by 2040, the utility said.
The utility plans to invest nearly $2 billion in renewable energy over the next five years to offset the closure of coal-fired generators. That investment is expected to more than double DTE Energy's renewable energy production. The company also will ramp up spending on energy-efficiency programs as well as invest as much as $800 million in upgrading an existing pumped hydro storage plant that is jointly owned by DTE Energy and Consumers Energy. The uprate at Ludington Unit 1 was scheduled to begin in early 2018 and is expected to finish this summer. The uprate at Ludington Unit 3 is scheduled to begin turning dirt this summer and be complete by the summer of 2020. For more information on the uprate, see Industrial Info's project report.
DTE, which serves about 2.2 million electric customers in the Wolverine State, also plans to ramp up its reliance on natural gas as a generation fuel, according to the IRP. "In Michigan, we are in the midst of a fundamental energy transformation," Gerry Anderson, DTE Energy's chairman and chief executive, said on March 28 in a statement. "Two years ago, we were one of the first energy companies in the country to commit to reducing carbon emissions 80% by 2050. Our plan has evolved, and we now are accelerating that goal by a decade."
"Achieving these goals will require significant investments in the years ahead - and we are convinced we can make those investments while ensuring that electricity remains highly reliable and affordable for Michigan homes and businesses," he continued."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Industrial Info is tracking more than $2.5 billion in electric power-related project activity by the two utilities.
In a settlement with a broad range of stakeholders, filed on March 23 with the MPSC, Consumers Energy said it wants to end its use of coal by 2040. The utility's clean energy plan envisions closing units 1 and 2 at the Daniel E. Karn Power Station by 2023, eight years ahead of schedule. Those units began operating in 1959. They have a combined generating capacity of 530 megawatts (MW) The plan also calls for closing units 1 and 2 of the J.H. Campbell Power Station Units by 2031. Those units began generating electricity in 1962. The two units have a combined generating capacity of 646 MW. Consumers owns 100% of those four units.
If approved by the regulators, Consumers' only remaining coal-fired generator, J.H. Campbell Unit 3, would close by 2040. That unit came online in 1980 and has a generating capacity of 820 MW. Consumers owns 93% of Campbell Unit 3. Once Campbell Unit 3 closes, the utility will cease burning coal.
In a statement on March 25, Consumers said it plans to meet its customers' electric needs through a combination of adding about 5,000 MW of new solar generation by 2030, as well as expansion of energy-efficiency programs that have saved customers about $2 billion since 2009. The clean energy plan would reduce carbon dioxide (CO2) emissions by 90% by 2040.
"This breakthrough plan positions Consumers Energy and Michigan as a national clean energy leader," Patti Poppe, president and chief executive of Consumers Energy, said in a statement on March 25. "The settlement enables our Clean Energy Plan and puts us on the path to zero coal substituted by increased renewable energy - most notably solar - all done in an affordable way through a competitive marketplace. Michigan will have one of the cleanest and most affordable energy systems in the country through this standard-setting plan."
Two weeks before Consumers reached a settlement with stakeholders, a judge with the MPSC recommended commissioners veto Consumers Energy's energy plan. The judge objected to the way Consumers would be compensated for contracting for new generation, the competitive bidding process Consumers plans to use to obtain that new generation and what independent generators would be paid for the power they supply to the utility. The commission will make its decision on June 10.
Michigan's other large electric utility, DTE Energy, filed its long-term energy plan with the MPSC on March 29. That plan, if approved by regulators, would result in closing the St. Clair Power Station and the Trenton Channel Power Station in 2022, one year ahead of schedule. The River Rouge Power Station also would be retired in 2022 under the plan.
The St. Clair station began operating in 1953. It can generate up to 1,571 MW. The Trenton plant began generating electricity in 1924. It has a generating capacity of 520 MW. The River Rouge facility can generate up to 516 MW. It went online in 1956.
Earlier, DTE had committed to closing one of its other major coal plants, Belle River, by 2030. The plan would leave DTE's other coal plant in Michigan, the Monroe Power Station, operating. That plant, with 3,296 MW in generating capacity, began operating in 1969. DTE Energy plans to eliminate coal in its generation by 2040.
The DTE integrated resource plan (IRP) did not address the future of Monroe because it is more focused on the next five years, but in an interview, DTE Energy spokesperson Randi Berris confirmed Monroe will be closed by 2040 and the utility will be 100% coal-free by that year.
With the retirement of the St. Clair, Trenton, River Rouge and Belle River plants, DTE Energy would cut its CO2 emissions by 50% by 2030, and 80% by 2040, the utility said.
The utility plans to invest nearly $2 billion in renewable energy over the next five years to offset the closure of coal-fired generators. That investment is expected to more than double DTE Energy's renewable energy production. The company also will ramp up spending on energy-efficiency programs as well as invest as much as $800 million in upgrading an existing pumped hydro storage plant that is jointly owned by DTE Energy and Consumers Energy. The uprate at Ludington Unit 1 was scheduled to begin in early 2018 and is expected to finish this summer. The uprate at Ludington Unit 3 is scheduled to begin turning dirt this summer and be complete by the summer of 2020. For more information on the uprate, see Industrial Info's project report.
DTE, which serves about 2.2 million electric customers in the Wolverine State, also plans to ramp up its reliance on natural gas as a generation fuel, according to the IRP. "In Michigan, we are in the midst of a fundamental energy transformation," Gerry Anderson, DTE Energy's chairman and chief executive, said on March 28 in a statement. "Two years ago, we were one of the first energy companies in the country to commit to reducing carbon emissions 80% by 2050. Our plan has evolved, and we now are accelerating that goal by a decade."
"Achieving these goals will require significant investments in the years ahead - and we are convinced we can make those investments while ensuring that electricity remains highly reliable and affordable for Michigan homes and businesses," he continued."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
