Frequently Asked Questions

Are new power plants really needed in Michigan?

Yes.  A January 2007 report from the Michigan Public Service Commission (Michigan’s 21st Century Electric Energy Plan) concluded that between now and 2015, Michigan would need to add new natural gas-fired and new coal-fired power plants.  These additions are necessary to avoid potential shortages of electric generating capacity.  At the same time, they will help attract businesses to Michigan who are seeking low cost, reliable energy resources.

Refer to the Need page for more information on this topic.

Who will buy power from the project?

We are proposing this plant to serve energy needs in Michigan. Power would be sold on the wholesale market and to industrial customers. Purchasers on the wholesale market could include investor owned utilities (e.g. Detroit Edison, Consumers Energy), electric cooperatives, municipal utilities and other retail providers. Industrial customers could include large manufacturing facilities in the State.

What about integrated gasification combined cycle (IGCC)?

We thoroughly evaluated IGCC technology, which is a process converting coal to gas for energy production, and determined it does not fit the need of our potential customers in Michigan. It is not as reliable or as cost-effective as our potential customers require. There are only six coal-fired IGCC plants operating worldwide, all relying on government subsidies or financing. Also, existing IGCC plants have had a poor reliability record with comparable or higher emission rates than what we propose for the Mid-Michigan Energy project. Given the performance risks and costs associated with IGCC technology, we could not finance and build a new, greenfield IGCC plant without government subsidies or cost recovery guarantees.

Refer to the IGCC Fact Sheet for more information on this topic.

Why do we need new coal-fired generation?

The 21st Century Electric Energy Plan identified a need for new baseload generation. While the majority of electricity in Michigan is currently produced by coal and nuclear baseload facilities, a new coal or nuclear facility has not been built in nearly 20 years.  The average age of power plants in Michigan is nearly 50 years old and it is anticipated that 3,500 megawatts (MW) of power plants will be retired in the next 20 years.

All of this, combined with the growing need for energy in Michigan, indicates new baseload generation as soon as practicable and no later than 2015.  The 21st Century Electric Energy Plan assessed a wide range of baseload unit technologies and determined that coal-fired generation is the most suitable for meeting the baseload need in Michigan.  It’s economical, reliable and, with the new technologies available, is environmentally safe and responsible.  We fully agree many alternative energy sources are critical to addressing the growing need for electricity and we develop those, as well.  However, it is clear to us that this particular facility needs to be coal-fired.

What type or level of mercury emissions are expected from this facility?

We will meet the emission rules that Governor Jennifer Granholm directed Michigan  pursue on April 16, 2006.when she asked for a rule to reduce mercury emissions  90%  from all Michigan power plants by 2015. Using a control technology called halogenated activated carbon injection, in conjunction with our other emission control equipment, we will reduce our mercury emissions by more than 90%.

Refer to the Mercury Fact Sheet for more information on this topic.

Why is this plant better than the coal plants we already have?

The Mid-Michigan Energy project represents a new generation of coal-fired facilities with higher efficiencies and the best available control technologies.  This means the project will use less coal and emit substantially less emissions to produce the same amount of power as older coal-fired facilities still in operations today. 

Refer to the Environmental page for more information on this topic.