[ad_1]
Michigan energy providers say the measures proposed by the Trump administration to declare a state of energy emergency are unnecessary and could lead to higher electricity bills for customers.
Earlier this month, President Donald Trump ordered the US Energy Department to shut down nuclear and coal-fired power plants, with energy providers looking for less-of-the-less solutions expensive and more respectful of the environment. A DOE memo obtained by Bloomberg suggests imposing a state of energy emergency and asking network operators to buy coal and nuclear energy to maintain energy diversity, power of the network and the national security of the United States. Such a federal intervention is unprecedented.
This decision aims to defeat Trump's election promises to save jobs in the coal industry, although critics say he favors coal operators who donated to the presidential campaign .
Members of the Federal Energy Regulatory Commission, which regulates sales and transmission of electricity, testified before Congress last week that there is no energy emergency to justify federal action. Michigan utility companies have agreed, saying that coal is expensive and that they can provide reliable electricity from cheaper and greener sources like natural gas, solar and wind energy.
"If they want to buy more expensive electricity, it's coming out of taxpayers' pockets," said Jim MacInnes, chairman of the Michigan Consumer Participation Council, a five-member group appointed by the governor for provide grants to organizations representing the interests. customers of residential energy utilities. "System operators tell us we have more than enough capacity, Michigan already has the highest electricity rates in the Midwest, so why would we want to make them higher?"
In March, Michigan had the 13th highest residential electricity rate at 15.55 cents per kilowatt hour, according to the US Energy Information Administration. The Michigan Public Service Commission sets prices for Michigan utilities.
Consumers Energy, Michigan's largest energy supplier, said last week that it would eliminate its use of coal by 2040, a target also set by DTE Energy Co. According to its plan, Consumers would shut down a coal plant in 2031 and another in 2040. withdraw 20 plants by 2023 and its last two by 2040. A nuclear power plant and four coal-fired power plants are expected to retire in Michigan from 39, here 2025. The closures would almost disappear the coal production supporting the network in the state.
Consumers Energy would reduce energy consumption by updating demand response, energy efficiency and power grid infrastructure. It would rely more heavily on solar energy as well as wind and battery storage. The Jackson-based company already has two natural gas plants, which it says will account for 10 to 15 percent of production once the coal is removed.
"We do not believe that there is an energy crisis or a state of emergency, but we believe that there is an opportunity for a generation to have a cleaner and more energy supply." light, "said Patti Poppe, President and Chief Executive Officer of Consumers and her parent company. CMS Energy. "What we do goes beyond regulation or federal mandates – we do it because we can produce electricity with this new balanced and clean energy portfolio in an affordable way that always ensures energy stability, reliability and accessibility. "
DTE plans to increase its use of natural gas and its Fermi 2 nuclear power plant, without carbon emissions. He recently received approval to build his first 24/7 natural gas plant in East China Township in St. Clair County. The Detroit company already has two units of natural gas that it uses during peak demand. The money it saves by using these resources would allow it to invest in renewable energy, said Irene Dimitry, vice president of planning and business development at DTE.
"Sometimes a mixture of regulated market and partly not lead to a malfunction," said Dimitry. "In this regard, the DOE's directive could increase costs." We do not advocate crisis intervention because we believe we have a sustainable plan for the future. "
DOE's plan questions whether the national electricity system can withstand natural disasters and cyberattacks without taking action. For two years, the DOE ordered network managers to purchase electric power or the capacity of some nuclear and coal power plants to increase demand and prevent their retirement. US Secretary of Energy Rick Perry, however, said Friday that federal actions were still "beefed up," Reuters reported.
Greater demand for coal would not save many Michigan coal plants, most of which will be operating for 60 years or more at the time of retirement. Some parts to repair and update the two power plants of Lansing Board of Water and Light from the 50s and 70s are no longer even available, said Amy Adamy, the spokeswoman for the board of directors.
"These plants are old, they are reaching the end of their life," said DTE's Dimitry, "We are already in the transition phase. We invest in these funds solely to ensure that they are reliable and secure throughout the transition period. It's like a car. You replace the parts until there are so many big parts that need repairs that you just need to buy a new car. "
Advances in hydraulic fracturing and horizontal drilling have made shale formations more accessible, resulting in an increase in the use of natural gas since 2005. The methane-rich fossil fuel accounts for about one-third of the energy consumed by natural gas. United States compared to 30% coal. In addition to being cheaper, natural gas produces about 50% less carbon than coal, according to EIA.
The DOE note indicates that nuclear and coal-fired power plants minimize the threats to the electricity grid because they can store these resources for months, unlike renewable resources that depend on weather conditions and the natural gas plants that depend on them. pipelines.
The Regional Transportation Organizations (RTOs), which oversee the power grid, have indicated, however, that they have more than enough capacity in the years to come. PJM Interconnection LLC is the nation's largest RTO, serving Washington, DC, and 13 states, including southwestern Michigan.
The Pennsylvania-based company said in a statement early this month that she had bought energy capacity until May 2022. She warned that the federal intervention would damage the markets and would be " expensive for consumers ".
"(T) here is not an immediate threat to the reliability of the system," PJM said. "There is no need for such drastic action."
The Midcontinent Independent System Operator oversees the power grid of most of the Lower Peninsula, 14 other states, and one Canadian providence. In a comment to FERC in March, Jennifer Curran, Vice President, Systems Planning, MISO, suggested that FERC "works in partnership with state regulators to ensure a coordinated effort." by addressing the resilience of the grid. In addition, the projections for the beginning of the month predict that its grid will have more than enough resources for this summer and 2019.
MISO may have more protection against DOE intervention than other RTOs such as PJM. Most MISO utilities own their generators, usually isolating them from the wholesale price volatility of independent power producers. This would reduce the impact of the price proposal, according to Nick Assendelft, spokesperson for the Michigan Public Service Commission.
For now, MISO and PJM still depend on coal energy. In the future, however, Dimitry said that the accessibility of Michigan's resources is well protected.
"We believe there will be strong access and availability in natural gas," she said. "On the East Coast, there have been problems getting pipelines into the pipeline, which is not a problem in Michigan, given the pipelines in the state and the pipelines that they have. build. "
Michigan has one of the largest natural gas deposits in the country and more than 8,700 miles of pipelines for delivery. The United States has nearly 300,000 miles of pipelines in the United States.
The resilience of the grid relies on more than just distribution, however, said Jon Jipping, chief operating officer of ITC Holdings Corp., a transportation company whose Michigan branch is headquartered in Novi. Resilience includes the transfer of electricity from generators to users, he said, which is why ITC and MISO are conducting drills to prepare for the threats of the power grid.
The transition of coal involves coordination between public services, RTOs and transport companies. This also complicates the management of the grid, as renewable energies such as wind and solar provide inconsistent power.
"We are working very hard to say that there is no energy emergency," Jipping said. "Resilience is much more than just about coal and nuclear – it's really on the grid as a whole."
(313) 222-2429
Twitter: @BreanaCNoble
Read or share this story: https://detne.ws/2Kjv2SF
Source link
