LANSING – Consumers Energy has told the Michigan Public Service Commission that its planned coal-fired plant near Bay City will cost $1.44 billion, up from $1.15 billion it estimated in May. The utility notified the commission of the cost increase in a filing on Sept. 21.

A recent bill draft released by Rep. Frank Accavitti Jr., (D-Eastpointe), who is chairman of the House Technology and Energy Committee allows the Commission to grant those two companies a certificate of need to build a plant, without hearing, based on a utility filing. What’s more, the proposal will let the utilities start charging customers even before the plant is delivering any power.

“This huge increase in plant expense is another reason why Michigan lawmakers should support Senate Bill 427 or House Bill 4630, which mandate competitive bidding for meeting Michigan’s future energy needs, and not return control of its electric system to monopoly utilities,” said Barry Cargill, executive director of the Customer Choice Coalition.

“The State of Michigan requires competitive bidding for all major state purchases because it saves our citizens money,” he said. “Now is the time to include electricity in the policy, to ensure that Michigan businesses and families are assured of getting the lowest cost possible for its electric needs.”

In other states, like Texas where the energy market is deregulated, consumers have the power to compare providers and choose the cheapest energy company in Texas. 

Consumers and Detroit Edison have publicly stated that they won?t build a new power plant unless Michigan?s current electric choice and competition policies are repealed.

SB 427 would increase competition and ensure the lowest cost possible for Michigan consumers by mandating that potentially less expensive solutions such as power purchases, renewable resources, efficiency or transmission additions must be considered as ways to meet Michigan?s future electric needs, and prevent cost overruns.

This column was written by Barry Cargill, executive director of the Customer Choice Coalition.

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