We can put off the need for additional power plants by using electricity more efficiently, but, at some point, Michigan must start building new base load generation.

Michigan’s economy may continue to struggle, but our demand for power continues to grow.

Based on estimates by the Michigan Public Service Commission (MPSC), our demand for electricity will increase between 1 percent and 2 percent per year over the next 20 years. With a statewide demand of approximately 24,000 megawatts (mw), that means our peak demand for electricity is growing at a pace of approximately 240 to 480 megawatts per year. A typical coal-fired generating plant is approximately 300 to 500 megawatts, and a nuclear plant is 1,000.

The last large coal or nuclear plant built in Michigan was completed in the late 1980s.

Last month, the MPSC released its annual “Summer Energy Appraisal.” The report predicts a slight decrease in summer electricity demand compared to last year, because this summer is not expected to be as warm as the “warmer than usual” summer of 2005. However, the report notes that the state’s two largest utilities will likely experience a demand that exceeds their instate generation supply by 722 megawatts. To meet their demand, they will need to buy from out-of-state suppliers.

With the state’s demand for electricity continuing to grow at approximately 480 mw per year, and the largest utilities already needing to buy from out-of-state suppliers to meet summer capacity needs, you can easily see where this is leading: Michigan needs to build additional generating capacity. And, the MPSC’s staff report on “Capacity Needs,” released in January, agrees. The report recommends that the state commence “a program to build one or two additional base load coal generating plants in Michigan on a staggered basis, with the first becoming operational about 2011 or shortly thereafter.” The bottom line is: We need more power to meet our growing demand.

So, what options do we have? I believe every option should be explored. Energy efficiency and conservation have to play a role. We can better insulate our homes, install compact fluorescent lighting, replace old appliances with Energy Star®-rated equipment, and dial up the thermostat to reduce the air conditioning load in the summer, to name a few.

The MPSC report states that an energy efficiency approach could reduce demand by about 593 mw after 10 years, or sooner if we adopt efficiency measures more quickly. The staff report also looked at renewable energy and estimated that approximately 1,156 mw of renewable energy, including 410 mw of wind, was a reasonable supply option over the next 20 years.

Where does this leave us as a state? Despite looking at every alternative, the staff report still concludes that Michigan needs to build a base load power plant—and we need to start soon. (Wolverine Power Cooperative in May announced that it will explore the possibility of constructing a base load plant using clean coal technology near Rogers City.)

All of these issues are being studied by the Legislature and governor. State Sen. Bruce Patterson has assembled a work group that is to submit a report to him by early June. The governor has charged the Chairman of the Michigan Public Service Commission, Peter Lark, to report to her by the end of the year. We believe Chairman Lark, with the input from the MPSC staff and all interested stakeholders, has the expertise necessary to craft a rational policy for the state that will set forth a plan to ensure the lights stay on and at an affordable rate.

Your electric cooperative is participating in the MPSC process and with the Legislature, and will continue to look at all options through the same lens we have used for 60 years—how best to provide a reliable, cost-effective, efficient power supply to our member-owners.

Watch the pages of Michigan Country Lines over the next year to learn more and please share your ideas with us, as well. As your electric cooperative, we need to hear from you—our owners.