Do Wolverine’s Economic Numbers Add Up? On May 3, 2008, Wolverine Power Co-op released a preliminary study by Anderson Economic Group predicting how the proposed Roger City coal plant would affect local tax and employment revenues. But according to an analysis by Tom Sanzillo of T.R. Rose Associates, AEG omitted a number of considerations that it used when it studied a proposed Midland plant, as well as Mr. Sanzillo’s previous analysis that conservatively predicts the new Wolverine plant would double the electric rates of its local affiliate, Presque Isle Electric & Gas. All other data comes from PIE&G annual reports.
In Rogers City, Strong Criticism of Coal Ash Proposal
Rogers City—A large number of Presque Isle County residents are questioning a plan to store massive amounts of toxic waste from a proposed 600 MW coal-fired power plant in the same giant limestone quarry near Lake Huron where the plant itself would be built. he sharp public opposition to the landfill was the second unpleasant surprise of the day for Wolverine officials: Just a few hours earlier, they had received word that the Michigan Public Service Commission had determined that the company did not need to build a new power plant to meet its customers’ future energy demands.
Wolverine FAILS Alternative Energy Analysis Consideration by StatePDF
Wolverine failed to demonstrate the need for the proposed facility as the sole source to meet their projected capacity. In particular, long-term purchase power options were not fully explored as part of their analysis. It should be noted that the majority of Wolverine’s long-term projected capacity need is based upon the expiration of power purchases (540 MW) on or before December 31, 2011. Wolverine has presented no evidence that the capacity currently supporting this existing contract will be unavailable in the future.
Cherryland Resolution Vote ‘Fails Perfectly’
TRAVERSE CITY—Capping their 90-day campaign to educate their fellow Cherryland Electric Cooperative members about the costs and financial risks of a proposed northern Michigan coal plant, a group of local citizens brought a resolution to the floor of their co-op’s annual members meeting this past Wednesday afternoon calling for more information about the project. The resolution requested more transparency about how the co-op’s financial involvement in the coal plant, which Wolverine Power Co-op wants to build in Rogers City, would affect Cherryland members’ rates. Tom Karas, founder of Co-OpConversations.org, the Web-based group that pushed the resolution, said that he sees the vote as a victory. “It was a perfect defeat,” according to Karas. “We couldn’t have asked for much better.” “We knew going in that actually passing the resolution on the first try was a long shot,” he said, “but we also attained our real goal—educating co-op members about the financial aspects of the Wolverine coal proposal...”
Wolverine CEO Pledges Financial Facts to Members May 18, 2009—Speaking to the Economic Club of Traverse City on Friday, Eric Baker, CEO of Wolverine Power Cooperative promised to fully disclose the cost of the new coal plant being proposed for Rogers City, MI. That disclosure however will come only if the permit process ends favorably for Wolverine, and when the final cost analysis is done. ... Baker may have been trying to head off the impact of a resolution being introduced to the Cherryland Annual Meeting on June 10th. The reform group Co-opConversations.org has promised to try and bring to a floor vote, Resolution 1-A that requests exactly what Baker promised! READ THE ENTIRE MEDIA RELEASE HERE
Co-opConversations.org offers helpful information to educate you about this enormous problem that WILL affect your pocketbook, your property value, and the job potential in Michigan!
Wolverine Mum On Coal Plant’s Price When Wolverine Power Cooperative announced plans to build a new, coal-burning power plant near Rogers City, the company said it would cost about $1.2 billion. But although a lot has changed in the coal and utility industries since Wolverine’s announcement three years ago, the co-op refuses to publicly discuss how those changes affect its proposed plant’s 2006 price tag. Many financial experts familiar with the energy and coal industries say that those changes have made the cost of new coal power very high, and made investing in new coal plants very risky. That, they say, is why utilities around the United States cancelled approximately 100 new coal plants in recent years, often in favor of less risky, cheaper energy efficiency and renewable energy plans.
Cherryland votes to self-regulate
TRAVERSE CITY -- Cherryland Electric Cooperative is the first co-op in Michigan to become self-regulated under a new state law. The board for the Grawn-based utility unanimously voted this week to assume authority for setting its own electric rates. Cherryland members can challenge the move with a petition signed by 5 percent or 750 members of the cooperative, whichever is less, and secure a two-thirds majority vote of the membership to overturn the decision. Cherryland serves around 33,000 members in its six-county service area.
Cherryland Cooperative members need to understand that their money is at risk due to the Wolverine Clean Energy Venture, the coal plant proposed for Rogers City. The following questions have been asked for the past year, and never answered
What is the new estimated cost for the coal plant?
What will be the cost of electricity from the plant?
How much will co-op members pay on an individual basis for the plant?
How much has already been spent of member funds on the development?
If the plant is not built, who pays for the development expenses?
The plant is nearly twice as large as needed, who will be getting the profits from the excess energy that will be sold onto the grid?
As a member-owner, don’t you feel these answers should be available to you?The bottom line is that the Wolverine coal plant becomes riskier by the day.
**Consider the following**
Coal plant costs have skyrocketed around the country causing over 80 plants to be shelved.
Coal has nearly doubled in price. Transportation costs are expected to dramatically rise.
Carbon regulations will mean energy from coal will be extra expensive in the near future.
Most utilities have a balanced portfolio of generation. If the plant is built Wolverine will be overly dependant on coal and will bear the brunt of carbon costs.
Our co-op board has signed an exclusive 35 year contract to get electricity from Wolverine; members are locked in for decades to what is bound to become a very expensive energy option.
At Co-opConversations.org we will provide details on the coal plant proposal including our own financial analysis. Co-opConversations.org will give case studies and give you links to do your own research to reach your own conclusion. And Co-op Conversations.org will also give you a way to regain control of your co-op and create a more financially stable and sustainable, member-owner environment.
New coal-fired electric generation development efforts are higher-risk investments subject to vigorous opposition through regulatory and legal jurisdictional venues – risks already incorporated into ratings and rating outlooks
Long-running debate over carbon-dioxide emissions continues to be a major impediment for issuers seeking air quality permits – question is: as a pollutant under the Clean Air Act (CAA), is it subject to regulation and if so, how?
Development efforts likely to be impacted in some form by a recent EPA Environmental Appeals Board (EAB) ruling associated with Deseret Power Electric Cooperative’s air quality permit application – decision issued November 13, 2008 (See the PDF that goes with the study below)
Visit us regularly and learn more about YOUR cooperative and YOUR money!
Co-op Conversations is not financed by or affiliated with any rural electric cooperative.
This website complies with the "Fair Use" provision of Title 17, (Copywrite Act - http://www4.law.cornell.edu/uscode).
