Consumers Energy, the main subsidiary of CMS Energy, announced this morning that it is delaying plans to build an 830 megawatt coal-fired power plant near Bay City due to market conditions.
In a statement the company said that the plant, which was expected to go online in 2017, will be deferred indefinitely because of “reduced customer demand for electricity due to the recession, forecasted lower natural gas prices due to recent developments in shale gas recovery technology, and projected surplus generating capacity in the Midwest market.”
Company CEO John Russell said that the Consumers has not ruled out future coal power developments but that it expects to use the $1 billion it had slated for the new coal unit for other investments.
“We have a number of alternative investment options, including additional environmental controls on some of our existing coal-fired units, that will support our efforts to provide customers with reliable and affordable energy,” he said.
Russell said that the company’s alternative investments are expected to create nearly the same number of jobs as would have been associated with building a new plant.
Consumers Energy has 1.8 million electric customers in Michigan.
Last week the Department of Natural Resources and Environment denied a permit for a petroleum coke and coal fired power plant planned by the Wolverine Power Cooperative in Rogers City.
One of the main reasons cited for the denial was the plant’s expected impact on ratepayers. According to the Michigan Public Service Commission the construction of that plant would have increased rates by around 60 percent.