Garrick Rochow, President and CEO of Consumers Energy, speaking to reporters in a virtual media call this morning.
(June 23, 2021 11:35 AM) Consumers Energy today announced a sweeping proposal to stop using coal as a fuel source for electricity by 2025 —15 years faster than currently planned. In a press conference, company officials said the plan would make the company one of the first in the nation to go coal-free and provide a 20-year blueprint to meet Michigan’s energy needs while protecting the environment.
“We are proud to lead Michigan’s clean energy transformation and be one of the first utilities in the country to end coal use,” President and CEO Garrick Rochow said. “We are committed to being a force of change and good stewards of our environment, producing reliable, affordable energy for our customers while caring for our communities during this transition.”
The plan, which requires regulatory approval, includes these pledges by Consumers Energy:
- To be among the first utilities in the nation to go coal-free by 2025;
- To use 90 percent clean energy resources by 2040;
- Build nearly 8,000 megawatts of solar energy to power Michigan’s homes and businesses by 2040;
- Stay on the path to achieve net zero carbon emissions, and
- Save customers about $650 million through 2040.
If approved by the Michigan Public Service Commission, the updated plan would speed closure of the company’s three coal-fired units at the Campbell generating complex near Holland.
- Campbell 1 and 2, collectively capable of producing more than 600 megawatts of electricity, would retire in 2025 — roughly six years sooner than their scheduled design lives.
- Campbell 3, capable of generating 840 MW, would also retire in 2025 — roughly 15 years sooner than its scheduled design life.
The updated proposal also calls for moving up closure of Karn 3 and 4, units that run on natural gas and fuel oil and can generate more than 1,100 MW to meet peak demand, to 2023 — about eight years sooner than their design lives.
“Consumers Energy is committed to a just transition away from coal as a fuel source for electricity,” said Brandon Hofmeister, senior vice president for governmental, regulatory and public affairs. “We supported employees and communities impacted by our 2016 coal retirements by finding new roles for workers who wanted to stay, fulfilling our environmental responsibilities at the sites and helping local leaders pursue new economic possibilities. We plan to follow the same philosophy to help those affected by the proposed Campbell and Karn retirements.”
By 2040, clean, renewable fuel sources such as solar and wind will comprise more than 60 percent of Consumers’ electric capacity. The company is planning to combine that growth with advances in energy storage and customer efficiency with 90 percent clean energy resources. The accelerated transition to clean, renewable sources includes the addition of nearly 8,000 megawatts of solar power. Consumers Energy currently operates solar power plants at Western Michigan University, Grand Valley State University and in Cadillac and purchases solar generation from several sites in Michigan.
During this transition from coal, Consumers Energy proposes buying four existing natural gas-fired power plants in the state: Covert Generating Station in Van Buren County; Dearborn Industrial Generation in Wayne County; Kalamazoo River Generating Station in Kalamazoo County; and Livingston Generating Station in Otsego County. The proposed purchases require state and federal regulatory approvals. The Kalamazoo River and Livingston plants are smaller and used primarily to meet peak demand.
These natural gas plants — along with Consumers Energy’s current natural gas-fired power plants in Zeeland and Jackson — would supply electricity as the company invests more heavily in renewable energy and continues to explore emerging technology to minimize impact on the environment.
Consumers Energy says the plan creates price stability and, by using natural gas as a fuel source to generate baseload power, will save customers about $650 million through 2040 compared to their current plan.
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