Dive Brief:
- A nonprofit backed by Michigan's largest utilities has begun a campaign warning the state's power consumers that 25 coal generating units will be shut down by 2020, with nine plant retirements in the next six months, the result of aging infrastructure and new environmental regulations, Midwest Energy News reports.
- Critics deride the campaign as "scare tactics," saying recent reports show Michigan has a surplus of generation and Clean Power Plan compliance will not impact the state's reliability.
- Citizens for Michigan’s Energy Future, which Midwest Energy News says is backed by Consumers Energy and other state power companies, claims that in April 2016 the state will face a generation shortfall of 1.3 GW, as power plants serving over a million people are shuttered.
Dive Insight:
When you go to the website of Citizens for Michigan’s Energy Future (CMEF), you may be greeted by a large clock counting backwards, doomsday style, to the day when more than two dozen coal units in the state are slated to close.
“It’s definitely scare tactics, and a desperate attempt” Laura Chappelle, former chair of the Michigan Public Service Committee, told Midwest Energy News.
“There’s a real issue with retiring plants,” Chappelle said. “But the fact is: Michigan utilities have imported power for decades. They have been relying on power from out of state for decades and we’ve always had reliable energy and capacity in Michigan."
But according to CMEF officials, the shortfall could have serious implications for the state. Group leaders say they aren't calling for the preservation of exsisting coal plants, but rather legislation that supports new generation to replace the retiring coal plants.
"Citizens for Michigan's Energy Future is advocating a comprehensive, Michigan-first energy plan to responsibly replace the power from nine coal plants set to close next year, account for Michigan's looming capacity shortfall and ensure all Michiganders have access to reliable, affordable and clean energy," Kelly Rossman-McKinney, spokesperson for Citizens for Michigan's Energy Future, wrote in an email to Utility Dive.
A web form on the group's blog allows an automated message to be sent to lawmakers, calling for a "Michigan First energy plan" that will keep generating power within the state. "A Michigan First plan puts us in control of our energy future instead of turning the decisions over to Washington D.C.," the group said.
The 25 units slated to close are spread among nine plants, including five at Presque Isle in Marquette and six at Eckert Station in Lansing.
“To account for growing capacity concerns, Michigan must responsibly replace the power we will lose due to these plant closures,” Rossman-McKinney said in a statement. “Another 15 units will be closed by 2020 – which means Michigan will lose enough capacity to serve over two million people. A Michigan-first plan with Michigan companies and Michigan workers generating the power we need in-state. If not, we will be left importing power and exporting jobs.”
Critics point out that Michigan is a member of a regional grid, the Midcontinent ISO, and that grid operators anticipate no generation shortfalls in the years to come. Numberous reports, they say, have found the Clean Power Plan does not pose a threat to Michigan's reliability and that MISO and the states can work together to craft compliance strategies that preserve reliable service.
The Michigan coal campaign echoes similar issues in Ohio, where FirstEnergy and AEP are pursuing subsidies for uneconomic coal and nuclear plants on the grounds that their retirement would threaten reliability.
Correction: A previous version of this article stated that 25 Michigan coal units would retire in the next six months. In fact, they are slated to retire by 2020, with nine plants retiring in the next six months. The post has also been updated to add a quote from a CMEF spokesperson.