Do we need a new coal power plant for power?

Last year, The Governor´s 21st Century Energy Plan projected a need for one new base load power plant in Michigan by the year 2015. This projection may not be realistic, as Michigan´s low economic growth has dampened electrical demand. David Littman, Chief economist for the conservative Mackinac Center in Midland, has stated ¨..considering the many plant closings and losses of employment and population, a realistic assessment would anticipate up to five years of declining energy demand in Michigan.¨ (DBUSINESS Magazine, November 2007)

DTE Energy, Michigan´s largest electrical utility, has forecast flat or declining demand thru 2012. Responding to economic reality, Michigan´s Public Service Commission has decided to review and possibly adjust forecasts downward. Currently, at least 5 large coal plants are in different stages of development around the state, in addition to tentative plans for a large nuclear plant in southeastern Michigan. Clearly, these plans exceed the most credible projections for power needs in the near future.

Will a new coal Plant make my electric bill go down?

The close proximity of this power plant will not lower local electrical rates, which are set statewide by the Public Service Commission. Mid Michigan Energy is a ¨merchant power¨ provider, and will seek to sell electricity to the highest bidder. At an earlier coal project in Iowa, this meant selling 100% of all power produced completely outside the state in Illinois, leaving Iowa citizens with all the environmental impacts, and none of the power.

Will a new coal power plant supply Dow Chemical, or local industry, with cheap electricity?

Mid Michigan Energy has no arrangement for supplying power to Dow, Dow Corning, Hemlock Semiconductor, or any other local industry. Mid Michigan Energy´s business model has no relationship to any local demand for energy. They have chosen this location because of good access to rail lines, power lines, and water. They will sell their electricity to the highest bidder, even if that is completely out of the state.

Will tax revenues from a new coal plant help the Midland community?

Mid Michigan Energy is seeking to sell power from this plant to the highest bidder. Among the possible customers are the many smaller ¨Municipal Power Cooperatives¨ around the state. In such a case, Michigan law exempts power facilities from local property taxes. In that event, Midland would be left with all the impacts and no tax revenues.

Coal is cheap, right?

According to the Wall Street Journal, dozens of coal projects around the country have been delayed or canceled due to rapidly rising costs. Costs of raw materials like concrete, steel and copper are rising rapidly due to increased demand from India and China. Mid Michigan Energy cost estimates rose 31 percent between May and December, 2007. Costs of other coal projects in the state have risen at similar or greater rates. Meanwhile, the cost of coal itself is rising. The nation´s largest producer, Peabody Coal, has forecast 10% annual increases in the price of coal. Since Michigan must import all its coal, rising transportation costs will also further raise prices.

What about Coal and Climate Change?

Andrew Liveris, CEO of Dow Chemical, has recently stated, "Climate Change is real, and the most urgent environmental problem our society faces".
NASA´s leading atmospheric scientist, James Hansen, has stated that, to avoid disastrous climate change, ´There should be a moratorium on building any more coal-fired power plants until the technology to capture and sequester the (carbon dioxide emissions) is available.¨ Every respected professional scientific organization in the world has declared that climate change is real, that Man is causing it, and that the consequences will be dire. Recent changes in the Arctic indicate that those changes are coming sooner than anyone had previously thought. All 3 remaining presidential hopefuls, including Republican John McCain, and Democrats Hillary Clinton and Barack Obama, have aggressive plans for dealing with climate change that will have major, as yet unpredictable impacts on the costs of coal power generation.

Are there any energy alternatives for Michigan?

The alternatives are here, now. Wind energy is now one of the lowest cost sources of new energy, and 30 percent of new added electrical capacity in 2007 came from wind. Michigan has a vast wind resource, equivalent to 3 times Michigan´s total electrical demand. The Land Policy Institute at Michigan State University has estimated that with a Renewable Energy Portfolio requirement, Michigan can begin to add 780 MW of new capacity each year, and 1100 construction jobs in wind power, every year for the next 20 years. In addition, Michigan could add $1.25 billion per year in construction related new investments and spending for the next two decades.Download MSU study

What is a Renewable Portfolio Standard (RPS)?

25 states in the US now have Renewable Portfolio Standards. (RPS) This means that they have committed to producing a set percentage of their electricity using renewable power by a certain date. These states captured 96 percent of all wind development in 2007, including 9 billion dollars in investment, 15,000 jobs in wind turbine manufacturing, and 10,000 construction and operation jobs. Michigan´s combination of huge wind resource, powerful manufacturing base, and skilled work force should put us at the head of the pack, yet due to short sighted legislators, we are still stuck in the last century.

Wind power is nice, but what do you do when the wind stops blowing?

New wind plants under construction in Iowa, and planned in Texas, will store energy underground as compressed air, and release it to generate power during times of low wind, thereby generating power 24/7 - a complete replacement for coal or nuclear base load stations. Even Texas oil magnate T. Boone Pickens is now investing 6 billion dollars in new wind capacity in Texas, including energy storage. He told the New York Times, ¨I have the same feelings about wind as I had about the best oil field I ever found.¨

Will Coal have health effects in my community?

Coal power plants release many Toxic Air Pollutants, including the heavy metals of mercury, lead, arsenic, chromium, selenium and manganese. Some of these build up in our land and water and end up in our food chain. Mercury, lead, and arsenic are potent neurotoxins. Coal burning power plants released 2,625.2 and 2,488.4 pounds of mercury in 2001 and 2002 in Michigan.

A recent study at the University of Texas concluded ¨..for each 1000 lb. of environmentally released mercury, there was a 43% increase in the rate of special education services and a 61% increase in the rate of autism.¨ Effects on a pregnant woman´s baby exposed in the womb are: IQ deficits, developmental disabilities, motor function deficits, abnormal muscle tone, and heart and kidney damage. Childhood and adult exposures also cause central nervous system abnormalities, learning disorders, and attention deficits. Medical studies also show a correlation between heart attacks, blood pressure abnormalities and toxicity to kidneys with exposure. Based on these concerns, the State of Idaho recently passed a two year moratorium on new coal plant construction. Idaho Governor James Risch stated, ¨´Mercury is a poisonous metal that threatens kidneys, and the nervous, digestive and respiratory systems, especially of young children....´ Many Americans are waking up to the fact that Coal power plants are a 19th century technology that only binds America to the past, and slows our progress into the Future. Recent polling shows 75 percent of Americans support a 5 year moratorium on coal construction. Does our City of Modern Explorers really want to tie our future for the next 50 years, to a technology that is outmoded, polluting, and promotes dangerous climate change? Or will we decide to lead the nation into the technologies of the 21st century?

I´m concerned. What can I do?

Let your lawmakers know. Write to local newspapers and call local radio stations.  Watch for more information here at MidlandCARES! 

As the permits are requested by these plants, the DEQ seeks public comment.  Clean Energy Now has current permit status and links to submit your own comments.  Add your voice!