Electric generation analysis filed with MPSC by Wolverine Power

by Richard Lamb, Advance Editor

The Michigan Public Service Commission (MPSC) will have input on Wolverine Power Cooperative?s air quality permit, as directed by Governor Jennifer Granholm. In her State of the State address in February, the governor asked that alternative electric generation alternatives be explored before the Michigan Department of Environmental Quality (DEQ) grant an air quality permit.

The cooperative?s assessment used conservative electric customer demand forecasts as well as aggressive energy efficiency and demand-side management program assumptions. In addition, Wolverine?s alternatives analysis indicates the cooperative will continue to build on its leadership position in Michigan in renewable energy generation, such as wind and biomass. However, the analysis concluded that even with successful programs of these types, the cooperative will require significant amounts of base load generation as early as 2012.

?We looked at a wide range of energy alternatives and determined our best option for meeting members? base load power needs is the plant we are currently developing near Rogers City,? said Eric D. Baker, president and CEO of Wolverine. ?However, Wolverine and its members will also continue to aggressively implement energy efficiency programs and add renewable energy generation to our portfolio.?

WOLVERINE, AND the two other entities seeking to built coal-fired power plants in the state, must file an electric generation alternatives analysis (EGAA) related to its proposed new coal-fired plant in Rogers City in Presque Isle County. Wolverine filed its EGAA with the MPSC, as directed in the procedures established in Case No. U-15958. The public has until July 9 to comment on the EGAA. The 521-page EGAA is available at; http://efile.mpsc.cis.state.mi.us/efile/viewcase.php? casenum=16000&submit.x=16&submit.y=9

On April 1, the MPSC entered into a Memorandum of Understanding (MOU) with the DEQ that clarified each participant’s role and responsibility regarding a review process to evaluate electric generation alternatives and provide technical assistance to the DEQ. This MOU answers requirements of an executive order issued on February 3 by Governor Granholm.

In this new directive, the ?MPSC is to provide technical assistance to the DEQ on all matters related to the need for electric generation in the state, as it relates to the analysis that looks at alternatives to coal-fired generation.? The MPSC is also to ?review the alternatives analysis to assess whether energy efficiency, renewable energy, or other alternatives meet future electricity needs,? states a press release from the MPSC.

?THIS DOCUMENT IS the direct outcome of the governor?s executive directive in her State of the State address and the resulting attorney general?s decision. This is really the outcome of all that political maneuvering,? said Wolverine?s executive vice president Craig Borr. ?Essentially it (EGAA) is a comparison of the Rogers City project to other alternatives, largely on a cost basis, on a fuel basis, on a technology basis and whether or not we feel that is the best option for us at this location.? Much of that work had been done already, leading Wolverine it its decision to begin looking at the possibility of constructing the power plant in Rogers Township, but it had to be formalized for the MPSC.

?It was more a matter of pulling work fro

m many different sources into one document,? Borr said. He estimated at least a dozen staffers and some outside consultants worked on the project, which took more than one month to complete. The public has 30 days to comment on the document, until July 9, and the MPSC then has 60 days to make its recommendation to the DEQ. That pushes the earliest possible decision on the air quality permit to October 9. Borr said Wolverine is hopeful the DEQ will make its decision by the end of this year. ?Think of it as the DEQ using the MPSC as its power supply or electric generation advisor or consultant,? Borr explained.

THE DEQ IS responsible for reviewing the alternatives analysis to assess the affect of the plants and alternatives on human health and the environment. Wolverine is seeking a permit to install a 600 megawatt Circulating Fluidized Bed solid fuel power plant. The MDEQ has indicated it will make a decision on Wolverine?s pending air quality permit later in 2009, and the cooperative estimates an in-service date of 2014 for the project. Construction will create 1,000 temporary jobs, and 100 permanent positions will be filled to operate the plant. Comments may be e-mailed to mpscedockets@michigan.gov. Written comments should be mailed to the Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, MI 48909. All comments should reference Case No. U-16000, should be consistent with provisions of Order in Case No. U-15958, and must be received by 5 p.m. on July 9. All information submitted to the Commission in this matter will become public information, available on the Commission’s Web site, and subject to disclosure