MPSC Staff Report Misses the Mark

(Wolverine issued this response Wednesday afternoon, after the Advance had gone to press).

CADILLAC, MICH. ? Wolverine Power Cooperative said today the Michigan Public Service Commission (MPSC) staff report on the cooperative?s Electric Generation Alternatives Analysis (EGAA) ignores the facts of Wolverine?s power supply situation and the realities of today?s wholesale electric marketplace and is potentially devastating for Northeastern Michigan?s economy.

In its report, MPSC staff stated that Wolverine ?failed to demonstrate the need? for its Wolverine Clean Energy Venture (WCEV) power plant project. However, the MPSC report did not identify a lower cost alternative to the WCEV plant for generating power. Wolverine is developing the $1+ billion, 600?megawatt solid fuel plant south of Rogers City, Michigan.

?Wolverine disagrees with the MPSC staff?s assessment of our electric generation alternatives document,? said Eric D. Baker, Wolverine president and CEO. ?While we agree that energy efficiency and renewable energy are important components of Wolverine?s future power supply portfolio, Michigan must build new base load generation to replace its aging power plants, which are among the oldest in the country.?

Wolverine voluntarily submitted its 500+ page EGAA to the MPSC earlier this summer documenting its need for 500 MW of new capacity in 2012, with that need growing in the future, despite a determination by Michigan Attorney General Mike Cox

that the process had no legal basis and violated the state constitution. While Wolverine respects the position of MPSC staff, the Michigan Department of Environmental Quality (MDEQ), not the MPSC, has the authority to issue the pending air quality permit.

?The MDEQ initially determined that our project met all applicable legal requirements when it issued our draft air quality permit in September 2008,? Baker said. Baker indicated that Wolverine would continue to work constructively with officials from the MDEQ on the pending permit. The MDEQ is expected to issue a decision on the permit later this year.

Wolverine is owned by and supplies wholesale electric power to six members: Cherryland Electric Cooperative in Grawn; Great Lakes Energy in Boyne City; HomeWorks Tri?County Electric Cooperative in Portland; Presque Isle Electric & Gas Co? Cop in Onaway; Spartan Renewable Energy in Cadillac; and Wolverine Power Marketing Cooperative in Cadillac.