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House Dem's energy package to cost consumers hundreds next year alone | 5 comments (5 topical, 0 hidden)

Michigan's Energy Crisis (none / 0) (#1)
by triznik on Fri May 09, 2008 at 03:41:23 PM EST

Michigan residents can expect higher utility bills thanks to re-regulation approved by the Legislature. For more information, here is an excerpt from a message I sent to the Detroit News in response to a published commentary by David W. Joos, president and chief executive of CMS Energy: I appreciate Mr. Joos' stated commitment to Michigan. However, I am skeptical about his assertion, "What we need now is a model that encourages significant investment in new power generation in Michigan so we can remain competitive with plentiful, affordable power. Our company alone has a plan to invest $6 billion in Michigan in the next five years, but we can't fully implement that plan without a revised energy policy model." Mr. Joos hopes that Michigan will be "able to move back to a cost-effective, regulated model." CMS has announced plans to build a coal-burning power plant at it Karn/Weadock Generating Complex near Bay City. Meanwhile, CMS is lobbying the Michigan Legislature for regulatory relief that will adversely impact competition in Michigan and effectively enable CMS to shift the cost burden for its new plant construction to utility customers. It is noteworthy that CMS Energy's principal subsidiary, Consumers Energy, recently sold the Palisades nuclear plant to Entergy Corporation for the bargain price of $380 million (roughly one-tenth the cost of a new nuclear plant), which represents $242 million for the plant itself, $83 million in nuclear fuel based on 2006 market prices, and $55 million in related assets. Consumers Energy agreed to buy back the plant's electric output under a 15-year contract. I suspect that a principal motivation for this sale was relief from labor costs at the Palisades plant. In 2006, Entergy stated on its web site its intent to "make employment offers to all 500 of the plant's active employees at their same salaries for 18 months. Entergy has also committed to maintain the benefits programs for the employees for 36 months." The Nuclear Regulatory Commission recently approved a 20-year renewal of the license to operate the Palisades nuclear plant. Good for Entergy, which is headquartered in Louisiana and operates 11 nuclear power plants. CMS's plans to build a coal-fired power plant--maybe not so good for Michigan utility customers, despite Mr. Joos' rhetoric.

House Dem's energy package to cost consumers hundreds next year alone | 5 comments (5 topical, 0 hidden)

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