[ exact phrase in "" • ~10 sec • results by date ]

[ Google-powered • results by relevance ]



Go to multi-category search »

LOCATION/TYPE

News Home
Archive
RSS

Subscribe to RSS feed

Add NWW headlines to your site (click here)

Sign up for daily updates

Keep Wind Watch online and independent!

Donate $10

Donate $5

Selected Documents

All Documents

Research Links

Alerts

Press Releases

FAQs

Publications & Products

Photos & Graphics

Videos

Allied Groups

Michigan’s not good for wind power, so Consumers Energy customers will pay more  

Credit:  Under 2016 state regulation rewrite, electric utility monopoly makes money either way | By Tom Gantert | Michigan Capitol Confidential | Nov. 7, 2019 | www.michigancapitolconfidential.com ~~

The Michigan Public Service Commission recently approved an application from Consumers Energy to buy an industrial wind farm development in Hillsdale County that is projected to begin operations by December 2020.

The Crescent Wind Project is said to have a levelized cost of electricity, a common industry metric, of about $48 per megawatt hour over a 31-year period. That’s above the average national cost, and the rate will hold only if the big utility company is allowed to use federal tax breaks to offset the project’s actual costs. The federal credit is worth $23 per megawatt hour.

Consumers Energy forecasts the production costs for the proposed 63 turbine towers to be $57.75 per megawatt hour, according to a plan approved in February by state regulators.

The average levelized cost for wind in the U.S. is $36.60 per megawatt hour, according to the Energy Information Administration. That means at best, Consumers Energy and its customers would be paying anywhere from $11.40 to $21.15 more per megawatt hour than the national average for the wind farm in Hillsdale County.

When contacted by Michigan Capitol Confidential, the company did not explain why it would pay so much more.

Jason Hayes, director of environmental policy at the Mackinac Center for Public Policy, said the public utility has to pay more for electricity generated by wind turbines because the wind isn’t as strong in Michigan as in other parts of the country.

“So, if Michigan’s utilities are building their wind facilities in areas with poor wind resources – like Hillsdale County – they will need to build a lot more turbines and have the turbines they build produce far less electricity. That ensures that the costs to build and operate wind facilities in Michigan is far higher than it is in states like Oklahoma or Kansas,” Hayes said.

Michigan’s two biggest electric utilities, Consumers Energy and DTE Energy, are both in the middle of plans to expand their capacity to generate electricity through wind turbines. This is due to a 2016 rewrite of the state’s utility regulations that they strongly supported. The law guarantees the companies a profit of around 10% even if the state-approved expansion of wind and solar power plants add more to their customers’ bills.

Source:  Under 2016 state regulation rewrite, electric utility monopoly makes money either way | By Tom Gantert | Michigan Capitol Confidential | Nov. 7, 2019 | www.michigancapitolconfidential.com

This article is the work of the source indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this article resides with the author or publisher indicated. As part of its noncommercial effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send requests to excerpt, general inquiries, and comments to query/wind-watch.org.

Wind Watch relies entirely
on User Funding
Donate $5 PayPal Donate

Share:


News Watch Home

Get the Facts Follow Wind Watch on Twitter

Wind Watch on Facebook

Share

CONTACT DONATE PRIVACY ABOUT SEARCH
© National Wind Watch, Inc.
Use of copyrighted material adheres to Fair Use.
"Wind Watch" is a registered trademark.
Share

 Follow: