Consumers Energy Plans Gas-Fired Plant in Lower Michigan (2024)

Consumers Energy took a significant step forward in its plan to build a 700 MW gas-fired power plant in central Michigan, filing on Friday for approval of a certificate of necessity with the Michigan Public Service Commission (MPSC).

Last year, two weeks after Michigan's governor touted natural gas as a fuel for economic revival, hometown utility Consumers said it would build a gas-fired power plant in Genesee County, whose county seat is Flint, birthplace of General Motors (see Daily GPI, Dec. 17, 2012).

"Our filing today establishes that this new natural gas plant is in the best long-term interests of Michigan and our 1.8 million electric customers," said Consumers CEO John Russell. "This $750 million project will create 600 construction jobs, about 30 operating and support jobs, and ongoing economic benefits for the regional I-75 corridor and Genesee County."

MPSC's review process for the filing is expected to take nine months, the company said. Consumers already owns the 230-acre site in Theford Township where it plans to build the plant. The site already is home to nine smaller gas-fired combustion turbine units. Plans call for construction to begin next year, with the combined cycle plant scheduled to go online in 2017.

The Jackson, MI-based utility has experienced a surge of customer interest in its largest natural gas distribution pipeline system expansion in a decade -- 36 miles -- in Secord Township and three other jurisdictions in the north-central, lower peninsula portion of the state (see Daily GPI, Jan. 22). Consumers' expansion has been driven by low natural gas prices, and the utility earlier this year said it planned further cuts in its retail gas utility rates -- up to 15% -- following a 10% cut last winter.

Consumers Energy Plans Gas-Fired Plant in Lower Michigan (1)

The Genesee plant's 700 MW are needed due to the scheduled suspension of operation of Consumers' seven smallest and oldest coal plants, which have a total capacity of about 950 MW. The company's customers set an all-time peak demand record last year, as electric sales rebounded with Michigan's improving economy.

"When operational in 2017, this plant will produce about 50% less carbon emissions than the coal plants it will replace," said Tim Sparks, Consumers' vice president of energy supply operations. "This switch in generation will help us reach our greenhouse gas reduction target of 20% by 2025."

©Copyright 2013Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.

Consumers Energy took a significant step forward in its plan to build a 700 MW gas-fired power plant in central Michigan, filing on Friday for approval of a certificate of necessity with the Michigan Public Service Commission (MPSC).

Last year, two weeks after Michigan's governor touted natural gas as a fuel for economic revival, hometown utility Consumers said it would build a gas-fired power plant in Genesee County, whose county seat is Flint, birthplace of General Motors (see Daily GPI, Dec. 17, 2012).

"Our filing today establishes that this new natural gas plant is in the best long-term interests of Michigan and our 1.8 million electric customers," said Consumers CEO John Russell. "This $750 million project will create 600 construction jobs, about 30 operating and support jobs, and ongoing economic benefits for the regional I-75 corridor and Genesee County."

MPSC's review process for the filing is expected to take nine months, the company said. Consumers already owns the 230-acre site in Theford Township where it plans to build the plant. The site already is home to nine smaller gas-fired combustion turbine units. Plans call for construction to begin next year, with the combined cycle plant scheduled to go online in 2017.

The Jackson, MI-based utility has experienced a surge of customer interest in its largest natural gas distribution pipeline system expansion in a decade -- 36 miles -- in Secord Township and three other jurisdictions in the north-central, lower peninsula portion of the state (see Daily GPI, Jan. 22). Consumers' expansion has been driven by low natural gas prices, and the utility earlier this year said it planned further cuts in its retail gas utility rates -- up to 15% -- following a 10% cut last winter.

The Genesee plant's 700 MW are needed due to the scheduled suspension of operation of Consumers' seven smallest and oldest coal plants, which have a total capacity of about 950 MW. The company's customers set an all-time peak demand record last year, as electric sales rebounded with Michigan's improving economy.

"When operational in 2017, this plant will produce about 50% less carbon emissions than the coal plants it will replace," said Tim Sparks, Consumers' vice president of energy supply operations. "This switch in generation will help us reach our greenhouse gas reduction target of 20% by 2025."

©Copyright 2013Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.

Consumers Energy Plans Gas-Fired Plant in Lower Michigan (2024)
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