State AG, Consumers Energy reach settlement to end use of coal in Michigan

Michigan Attorney General Dana Nessel has entered into a proposed settlement agreement with Consumers Energy Company in its integrated resource planning case before the Michigan Public Service Commission.

The proposed settlement is still subject to final approval by the MPSC. If approved, it will provide significant savings over the original proposal and will also result in Consumers ending its use of coal by 2025, which is 15 years earlier than originally planned.

Consumers Energy filed its new integrated resource plan in June 2021. Its current plan was approved in June 2019 and provided for studying the closure of two of the remaining three coal plants the company owns. However, this case proposes the early closure of all remaining coal plants and further movements to reducing carbon emissions.   

According to Consumers, it will be one of the first utilities in the country to end its use of coal.  

In addition to going coal-free, the settlement agreement provides for the building of nearly 8,000 additional megawatts of solar energy by 2040.  If everything goes as planned, Consumers will generate 90% of its electricity using clean energy resources by 2040.

Another significant term of the settlement provides for the provision of direct financial resources to ratepayers. At the urging of the attorney general, Consumers Energy agreed to donate $5 million this year to a fund that helps low-income utility ratepayers, with the potential for $33 million in total assistance in additional $2 million increments over a 14-year period.


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