A report commissioned by a group fighting the development of a new coal-fired power plant in Rogers City finds that increasing transportation costs for coal will force the Wolverine Power Cooperative to double its utility rates when the planned plant goes on line.
The economic analysis of the proposed plant, which was done by Tom Sanzillo of T.R. Rose and Associates in New York City for Michigan Energy Alternatives, assumed annual increases of 10 percent in coal costs, 7.5 percent in transportation costs, and 2.5 percent in operation and maintenance costs.
These increases will force the utility company to charge 17 to 18 cents per kilowatt-hour for electricity from the new plant, Sanzillo wrote, making coal-based power at least as expensive as power generated by wind turbines.
Several new coal-fired power plants have been proposed in Michigan recently though projected demand for electricity has been revised downward by the Michigan Public Service Commission as the state continues to use less electricity for manufacturing.