Consumers Energy proposes $272M grid modernization and clean energy investment for Michigan
In its latest rate change request, Consumers Energy filed for a $272 million investment to upgrade Michigan’s power grid, improve reliability and expand clean energy incentives.
As this is merely a proposal, the final impact to custom bills cannot yet be said with certainty, but if the plan were approved as proposed, the average household would face electric bill increases of about $7.50 per month. In return, though, Consumers said its updates would help reduce customers’ average length of time without power by nearly 15 percent by 2025. Actual impact could be determined after approval from the Michigan Public Service Commission (MPSC) next year.
“The main priority of our plan is simple: fewer, shorter and less frequent power outages for our customers which requires a modernized grid,” Guy Packard, vice president of electric operations for Consumers, said. “Like any tool that people use to power their lives — whether that’s a car, cell phone, an appliance or a house — the energy grid needs care and investment to work properly without interruption. We’re committed to powering our customers’ lives with reliable energy now and in the future with this requested investment.”
Additionally, the request would provide a host of electric vehicle incentives, making it easier for residential customers to both purchase and install chargers and more. Demand response programs would be expanded to help save customers money and reduce energy waste by emphasizing optimal usage and clean energy investments would double the size of Consumers’ distributed generation program. At the same time, the rate change would encompass an altered economic development rate to draw in or encourage expansion of existing businesses in the state. It would also allow Consumers to purchase the 1,176 MW natural gas-fired Covert Generating Station in Van Buren County.
“To protect Michigan’s environment for future generations, we have proposed to eliminate coal as a fuel source for electricity by 2025 — but this plan will take every ounce of effort to ensure we can reach this goal while making sure electricity is more reliable and affordable for all,” Packard said. “Additionally, we are focused on growing businesses here in Michigan and want to get ahead of the global marketplace to attract and retain jobs which requires competitive electric rates for our largest job-creators.”
All of this factors into the company’s larger, five-year $5.4 billion Electric Distribution Infrastructure Investment Plan, which encompasses everything from trimming trees to investing roughly $1 billion per year into power grid, reliability and resiliency upgrades. Smart meters, sensors and automation devices will be increasingly rolled out, and the company intends to create a new percent of income payment program pilot to help low-income customers keep up with their bills and stay connected to that grid.
