Consumers Energy settles with stakeholders over Clean Energy Plan, pledges coal elimination by 2025

After agreeing to a settlement with key stakeholders, Consumers Energy announced this week that, as part of its Clean Energy Plan, it will cease using coal as a fuel source for electric generation by 2025 – pending regulatory approval.

If greenlit, the agreement would make Consumers one of the first utilities in the country to go coal-free, following the closure of three units at the J.H. Campbell coal plant in 2025 and two units at the D.E. Karn coal plant in 2023. In addition to the utility itself, the plan was backed by a mix of customer and environmental groups, the Michigan Public Service Commission (MPSC) staff, energy industry representatives, and the Michigan Attorney General. 

“This is a historic commitment to lead the clean energy transformation and create a brighter future for our state,” Garrick Rochow, president and CEO of Consumers Energy, said. “A diverse set of stakeholders came together to endorse a Clean Energy Plan that will provide reliable and affordable energy to customers for decades to come while protecting the environment.”

This plan represents an update to the original 2018 Clean Energy Plan, filed with the MPSC. It came after more than a year of input from and discussion with stakeholders. In addition to the bolstered dedication to coal elimination, other aspects of the settlement include:

• The addition of nearly 8,000 MW of solar power by 2040 to secure 60 percent of Consumers’ capacity comes from clean sources
• Deployment of 75 MW of battery energy storage by 2027 and 550 MW by 2040
• Reliability-assurance purchases of natural gas power from the Covert Generating Station in Van Buren County while halting construction of further methane plants
• Continuation of energy waste reduction programs, funding of utility bill assistance programs for low-income customers, and increased price stability measures meant to save customers an additional $600 million through 2040, compared to predicted savings from the original 2018 plan

The settlement should provide for a 20-year blueprint for Consumers, inclusive of numerous accelerated measures that would put the company on track for carbon neutrality by 2050.

“The Michigan Environmental Council applauds the work of the diverse set of stakeholders that reached this historic settlement agreement,” Charlotte Jameson, chief policy officer for the Council, said. “If approved by the Michigan Public Service Commission, the settlement will dramatically expand renewable energy in Michigan and ensure Consumers is 100 percent coal-free by 2025. It’s a huge milestone in combating the climate crisis and will put Michigan on track to reach its near-term carbon neutrality goals. We urge the Commission to approve the settlement and secure the climate, air, and economic benefits that will result.”

The plan would also go a long way to ensuring Michigan’s climate goals statewide, as Consumers is the state’s largest energy provider. It services 6.8 million natural gas and electricity companies therein.