Consumers Energy reaches settlement agreement on clean energy plan for Michigan

Consumers Energy is moving solidly toward greener energy investments, having reached a settlement agreement with a mix of customer groups and environmental organizations on its Integrated Resource Plan (IRP) that includes reducing carbon emissions by more than 90 percent by 2040.

Michigan’s largest energy provider said on Monday it had broad support for its Clean Energy Plan after filing the settlement with the Michigan Public Service Commission (MPSC), which must approve the agreement.

“This breakthrough plan positions Consumers Energy and Michigan as a national clean energy leader,” Patti Poppe, president and CEO of Consumers Energy, said. “The settlement enables our Clean Energy Plan and puts us on the path to zero coal substituted by increased renewable energy – most notably solar – all done in an affordable way through a competitive marketplace. Michigan will have one of the cleanest and most affordable energy systems in the country through this standard-setting plan.”

The plan provides details on how the company will meet the state’s energy needs with greater use of energy efficiency programs and more renewable energy.

The plan calls for Consumers to eliminate coal as a source of fuel to generate electricity by 2040. By 2030, the settlement calls for Consumers to increase its renewable energy supply by 5 gigawatts of solar – a 400 percent increase over current figures. The company also intends to expand energy efficiency programs, which it said have saved customers $2 billion since 2009, and increase affordability of renewable energy sources through a competitive bidding process.

Plans for the IRP have been underway since June 2018, when the company first filed it with the MPSC. The settlement follows months of formulation, based on input from a broad number of stakeholders, including the Association of Businesses Advocating Tariff Equity, Michigan Chemistry Council, Energy Michigan, the Independent Power Producers Coalition of Michigan, Michigan Electric Transmission Company, Michigan Environmental Council, Sierra Club, National Resources Defense Council and the Michigan Attorney General’s Office.

Several stakeholders declined to comment until the settlement agreement is finalized.

Such a sizable shift in energy generation by Consumers Energy, which provides electricity and/or natural gas to 6.7 million customers across Michigan, could mark a dramatic change in the state’s energy market.

“We’re proud to be partnering with major business customers, residential advocates and environmental organizations to bring the cleanest and most competitively priced energy to the people of Michigan so our home state can grow and prosper,” Poppe said. “We’re grateful for the contributions of all stakeholders throughout this process and look forward to the MPSC’s decision on our plan.”