Presque Isle Power Plant replaced by two natural gas generators in Michigan’s Upper Peninsula
The anticipated shutdown of Michigan Presque Isle Power Plant has concluded, and its share of the state’s energy production has been replaced by Upper Michigan Energy Resources’ (UMERC) A.J. Mihm Generating Station and F.D. Kuester Generating Station.
The twin natural gas-fueled generating stations are located in Michigan’s Upper Peninsula. They began operation on March 31, the same day Presque Isle went dark. The changeover has been anticipated since a call for energy in the state’s more rural peninsula was heeded back in 2015. In all, the transition cost WEC Energy Group — UMERC’s parent company — $275 million. Half of this investment will be recovered through a 20-year agreement with Cliffs Natural Resources, while retail electric rates pick up the rest.
“The new generating stations are good for our customers, good for business and good for electric reliability throughout the U.P.,” Kevin Fletcher, president and CEO of WEC Energy Group, said. “Closure of the Presque Isle Power Plant also helps achieve our goal of reducing carbon dioxide emissions by 40 percent, well ahead of our 2030 target.”
UMERC estimates the new generating stations will save their customers as much as $600 million over the next 30 years. Their installation was seen as a less costly alternative to the upgrades that would have been needed to keep Presque Island going and boost the region’s transmission capacity. It also replaces a coal plant with cleaner natural gas operations.
