Consumers Energy interest in Palisades plant misreported

By Jon Bisnett

Michigan’s largest utility company, Consumers Energy, was reported to be making a move for purchase of the Palisades Power Plant in Covert Township. Entergy, the current owner, has the existing nuclear facility slated for a permanent shut-down scheduled for October of 2018, citing lowered market demand.  Consumers on the other hand is in the market for a plant to convert to natural gas production. Associated Press sources reported last week that Palisades may just fit the bill. Or does it?

The Jackson-based Consumers Energy announced last week it has informed the Michigan Public Service Commission it is currently seeking a single-cycle or combined-cycle plant capable of servicing up 800 megawatts in the Lower Michigan market. It was reported last week that Consumers has a specific interest in Palisades. Consumers did not confirm any such intention in a recent press release. Now the Associated Press has since corrected its own story to say Consumers is strictly looking for an existing natural gas plant capable of generating the power it would have purchased from Palisades.

“Consumers’ current goal is just to see what reliable and affordable power plants are available that may help us with our future plans,” Consumers’ spokesman Brian Wheeler said.

A formal Request for Proposal that Consumers published in the last week of March states the plant must be located in Michigan’s Lower Peninsula to be considered. It also said that the company prefers to invest in an existing plant or plants with between 300 and 800 available megawatts. Responses to that RFP are due mid-May.

Entergy-owned Palisades is slated to close in October 2018, assuming the MPSC agrees to terminate the current contract Entergy has to sell electricity to Consumers. Following a record run of 516 days of continuous operation, Palisades will go off-line in May for a scheduled refueling and maintenance outage despite the closure in fall of 2018.

At a recent open house held by Entergy, plant officials made it very clear that despite the impending shut-down, the company has provided everything the plant requires in terms of financial resources for maintenance needs including budget for a new cooling tower currently under construction. “There are no shortcuts taken when it comes to matters of safety and reliability,” said Site Vice President Charlie Arnone.

The Palisades plant was originally built for the Consumers Power Company back in 1971 as the second nuclear facility on the west Michigan Shoreline with D.C. Cook in Bridgman preceding it in 1969, owned by American Electric Power and operated by Indiana Michigan Power Company. Consumers Energy sold the Covert plant to Entergy in 2007 under an agreement to then buy power from the facility.

The MPSC has until August to first determine if it will allow Consumers to terminate its deal with Entergy, paving the way for the Entergy shut-down. The MPSC says it may not approve the closure without proper assurance that Consumers has access to power required to cover peak loads. The contract to purchase electric power had originally been scheduled to expire in 2022.

Some 600 jobs and Van Buren County’s largest property tax payer hangs in the balance, sending a shock wave through the communities of Covert and South Haven since Entergy first announced its intentions to cease operations. The possibility of a Consumers purchase and natural gas conversion of the Covert Township site would have gone a long way to calm nerves, preserving both jobs and tax revenue.

The Public Service Commission  has a pair of back-to-back public forums scheduled for Monday, May 8 at the Van Buren Conference Center in Lawrence to inform the public on the termination of the current Consumers’ agreement, which the company claims will ultimately result in cost savings for its customer base.

These meetings will include talking about securitization, the process by which a utility, following an issued financing order by the commission, replaces high-cost debt and equity with lower-cost debt in the form of bonds.

Consumers has stated that it intends to recover a securitization of the $172 million buyout fee due Entergy through rates.

The MPSC will inform the public at the meetings about its role, the timeline and the administrative process in the coming months to facilitate the Palisades shut down. The TCR will continue to follow the developing story.

Spring Mom2Mom Sale just around the corner

 The Berrien County Youth Fair Fundraising Committee has preparations underway for the second annual Spring Mom2Mom Sale (their sixth sale in total).

A Mom2Mom Sale is a large indoor sale where moms can rent tables to sell their children’s outgrown, gently used items to other moms and dads. This is a great place for new expectant moms and their support systems to find maternity wear, baby carriers, baby gear, cribs, bassinets, bouncers and much more at a fraction of the cost of new items.

Hosted at the Berrien County Youth Fair, the sale will be held on Saturday, April 29, 2017 from 8:00 a.m. until 1:00 p.m. in the commercial buildings on the fairgrounds in Berrien Springs. Admission is $2 per person, kids ages 12 and under are admitted for free.  Those attending should enter gate 2 (across from Apple Valley Market).

The fundraising committee will provide concessions for shoppers and sellers, selling coffee, hot chocolate, water, pop, chips, and hot dogs.  A bake sale will also be held during the sale with the proceeds going towards the Exhibitor Premium Fund, benefiting the BCYF exhibitors.  An ATM will also be available that day for convenience as most sellers only deal in cash.

A limited number of spaces are still available for those interested in selling at the sale. They are $25 for a 10’ x 19’ space that includes an 8’ table and 2 chairs. Sellers are welcome to bring their own tables, racks, etc. that will fit in their space to help organize and sell their items.  Those interested in renting a spot should contact the Fair office to check on availability of spaces.

The past sales have had over 1,000 attendees and have only been growing in popularity. The committee looks forward to hosting this sale and welcomes all public (not just moms!) to attend.

Any questions regarding the sale can be directed to the fair office, to their Facebook event page: Berrien County Spring Mom2Mom Sale, or e-mail at m2m@bcyf.org.