The study also found that there will be no increased demand for electricity in the state for years to come, and that the cost of electricity from the Wolverine plant will be at least as expensive as power currently generated by wind turbines.

The study, which arrives as the state experiences a 'coal rush' led by energy companies eager to build more coal plants in Michigan before governments enact new regulations to slow global warming, was released at a press conference in Traverse City today by a new local citizens organization. Several local businessmen and a local minister also appeared to express concern over the costs the study predicts.

The study calculated the total costs of Wolverine's proposed plant, whose projected emissions are being scrutinized by state environmental officials, and computed what the company would have to charge to remain profitable once the plant begins operation. The firm supplies power to four other electric cooperatives in central and northern Lower Michigan.

'Michigan residents are looking at electricity from this plant that will approach 17-18 cents per kilowatt-hour' the study concluded, which is 'more than double the current price.'
The analysis, by Tom Sanzillo of T.R. Rose and Associates in New York City, assumed annual increases of 10 percent in coal costs, 7.5 percent in transportation costs, and 2.5 percent in operation and maintenance costs. Mr. Sanzillo said those are conservative numbers.

He also said that, given that Michigan's economic restructuring is cutting energy consumption, and that the state legislature is likely to mandate energy efficiency and conservation programs that will further reduce consumption, the state will not need a new coal plant for at least several decades.

The report added that electricity from Wolverine's proposed plant would likely cost more than what wind power costs today - a cost that is declining steadily as the wind industry expands and matures.

Tom Karas, founder of Michigan Energy Alternatives, the new, Traverse-area group that commissioned the study, said Wolverine's plan to build a new coal plant is shortsighted.

'It makes no sense for Wolverine to rely even more on a fuel whose price is rising and is guaranteed to rise even more drastically in the future,' Mr. Karas, a former building contractor, said. 'The cost of coal's environmental damage is rising, too. However it makes great sense to invest in generation that uses an absolutely free fuel that does not accelerate global warming.'

Two local businessmen and a local minister who say they are concerned about the size of their future energy bills also spoke at the news conference.

Evan Smith, vice president of Food for Thought Inc., a firm in nearby Honor, Mich., that processes, packages, and markets organic and locally grown food products, pointed out that projects like the one Wolverine is promoting would directly affect his business.

'Let's not kid anyone: Surviving economically in Michigan right now is tough for small business,' Mr. Smith said. 'We've done a good job of containing our costs, but if a new coal plant pushes electricity rates off the charts, I don't know how we will absorb that added expense other than to pass it on in the price of the product.'

Steve Berg, co-owner of Little Fish Woodworks, said his company is enjoying steady growth, even with the construction slowdown. But the fact that his high-end shop uses so much electricity has him concerned about the Wolverine proposal.

'We analyze costs every step of the way,' he said. 'To pay more than double for our energy, especially dirty coal energy, would be an huge burden that would definitely drive our prices up.'

And Reverend Chip Roush, head minister of Unitarian Universalist Congregation Grand Traverse, also spoke, noting that he has to think about his 'customers' too.

'This would significantly affect the programs we offer,' Reverend Roush said. 'We try to educate the community on global climate change and other environmental issues; now those very issues are threatening our programs. It used to be that companies justified environmental damages by claiming that fixing them would cost too much. It's obviously quite the opposite in this case.'

Organizers of the press conference said they held the event today as part of a statewide campaign to halt, at least temporarily, what has become Michigan's 'coal rush.' Various companies have proposed building a total of at least seven new or expanded coal-burning power plants in Michigan.

The Sanzillo report concludes: 'Now is not the time to add more coal to the state's electricity generation mix. Now is the time to step back and find alternatives. Because of Michigan's weak economy there is actually time to do so. There is, however, no time to waste.'

 View the report here: Sanzillo report.